What is an Exchange-Traded Product?
An Exchange-Traded Product (ETP) is a securitised financial instrument issued as a debt security by a Special Purpose Vehicle (SPV). Each ETP carries its own International Securities Identification Number (ISIN), enabling it to be booked, settled, and custodied through standard banking and brokerage infrastructure, just like any other listed security.
The term "ETP" encompasses a broad category of instruments including Exchange-Traded Notes (ETNs), Actively Managed Certificates (AMCs), Tracker Certificates, and other structured securities. What unifies them is the securitisation framework: an SPV issues notes that represent a claim on a defined pool of assets or an investment strategy, and these notes are tradable through central securities depositories such as Euroclear and Clearstream.
Unlike Exchange-Traded Funds (ETFs), which are regulated fund vehicles that passively replicate an index, ETPs can be actively managed. The portfolio manager retains full discretion over asset allocation, security selection, and timing, making ETPs the preferred vehicle for bespoke and alternative investment strategies that do not fit within the constraints of a regulated fund framework.
ETPs issued through bankruptcy-remote SPV compartments provide structural investor protection. The assets within each compartment are ring-fenced from other compartments and from the issuer's balance sheet, ensuring that credit risk is isolated at the product level. This structure has been validated across major jurisdictions and is widely used by institutional investors, wealth managers, and family offices globally.
ETP vs ETF vs AMC: Understanding the Differences
The structured products and exchange-traded instruments landscape includes several overlapping terms. Understanding the precise differences between ETPs, ETFs, and AMCs is essential for selecting the right vehicle for your investment strategy and distribution objectives.
Exchange-Traded Product (ETP)
The broadest category. An ETP is any securitised instrument issued by an SPV with its own ISIN. ETPs can be listed or unlisted, actively or passively managed, and can hold any asset class. The term is commonly used in the US and international markets to describe bankable structured securities that provide exposure to investment strategies.
Exchange-Traded Fund (ETF)
A regulated fund vehicle that trades on an exchange and passively tracks a published index. ETFs are subject to fund regulation (UCITS in Europe), must publish daily NAV, and are restricted to liquid, listed underlyings. ETFs cannot hold private assets, illiquid instruments, or exercise active discretion over portfolio composition.
Actively Managed Certificate (AMC)
A specific type of ETP where the portfolio manager has full discretion to adjust the underlying portfolio. AMCs are the European term for what is often called an "actively managed ETP" or "discretionary structured note" in other markets. AMCs and ETPs are functionally identical, the terminology varies by market convention. Learn more about AMCs.
| Characteristic | ETP / AMC | ETF |
|---|---|---|
| Legal Structure | SPV-issued debt security | Regulated fund |
| Management Style | Active or passive | Passive (index-tracking) |
| Asset Flexibility | All asset classes | Liquid, listed only |
| Setup Time | 4–8 weeks | 6–18 months |
| Distribution | Professional investors | Retail & institutional |
| Exchange Listing | Optional | Required |
ETP Issuance Process
Noray Capital manages the entire ETP issuance lifecycle, from initial strategy consultation through ISIN allocation, first subscription, and ongoing administration. The process is designed to be efficient and transparent, with clear milestones and timelines at each stage.
Consultation & Strategy Design
We work with you to define the investment strategy, target asset classes, economics, distribution parameters, and investor eligibility criteria. The appropriate jurisdiction and SPV structure are selected based on your specific requirements.
Legal Structuring & Documentation
Our legal and structuring team prepares the issuance documentation, including the term sheet, offering memorandum, subscription agreements, and service provider mandates. All documentation is tailored to the chosen jurisdiction's legal framework.
SPV Compartment & ISIN
A dedicated, ring-fenced compartment is created within the SPV. The ETP is assigned its own ISIN and registered with Euroclear or Clearstream for DVP settlement. Bloomberg quotation is configured if required.
Launch & First Subscription
The ETP is launched and made available for subscription. Investors subscribe through their custodian bank using standard DVP settlement. The initial NAV is established and the portfolio manager begins active management.
Ongoing Administration
NAV is calculated at the agreed frequency. Accruals, corporate actions, investor reporting, and regulatory compliance are handled by the platform. The portfolio manager retains full discretion over investment decisions.
Supported Asset Classes
ETPs issued through Noray Capital can hold a comprehensive range of asset classes. The SPV and custody framework is designed to accommodate both liquid and illiquid instruments within a single product or across multiple compartments.
Equities & Bonds
Listed stocks, equity baskets, government bonds, corporate credit, convertibles
ETFs & Indices
Synthetic or physical replication of indices, ETF baskets, sector exposures
Private Credit
Loans, promissory notes, real estate mortgages, trade finance, project finance
Real Estate
Real estate equity, mortgage-backed instruments, REIT wrappers, development loans
Alternatives
Private equity, venture capital, hedge fund access, commodities, infrastructure
Digital Assets
Cryptocurrency baskets, tokenised securities, DeFi yield strategies, digital commodities
ETP Issuance Jurisdictions
Noray Capital structures ETP issuance across three institutional-grade jurisdictions. Each jurisdiction offers a distinct combination of regulatory framework, setup speed, segregation and market access, allowing us to match the right domicile to your strategy and investor base.
Luxembourg
Securitisation Vehicle · 6–8 weeks
- EU-regulated framework
- Euroclear settlement
- Institutional credibility
- EU market access
Guernsey
Protected Cell Company · 4–6 weeks
- Fastest setup
- Statutory cell segregation
- Ring-fenced PCC cells
- Professional investors
Cayman Islands
Segregated Portfolio Co. · 4–8 weeks
- Structurally neutral
- Global recognition
- US investor access
- Master-feeder ready
For a comprehensive comparison of each jurisdiction's legal framework and capabilities, visit our Jurisdictions overview.
Platform Capabilities
Noray Capital's issuance platform provides a comprehensive, integrated technology and operations layer that supports the entire ETP lifecycle, from initial structuring through ongoing administration and investor servicing.
ISIN Allocation & CSD Registration
Each ETP receives a dedicated ISIN and is registered with Euroclear or Clearstream for standard DVP settlement through any custodian bank.
NAV Calculation & Valuation
NAV is calculated at agreed frequencies (daily, weekly, monthly) with full transparency on positions, accruals, and performance attribution.
Bloomberg Quotation
Optional Bloomberg integration for NAV publication, price transparency, and accessibility through terminal-based investment workflows.
Investor Reporting
Automated factsheet generation, position reporting, performance analytics, and regulatory disclosures, all branded to your specifications.
Waterfall Configuration
Configurable distribution waterfall supporting high-water mark and hurdle mechanics, accruals and multi-party splits, applied automatically at each valuation point.
Corporate Actions & Lifecycle
Subscription/redemption processing, coupon payments, maturity management, secondary market order handling, and product restructuring.
Document Management
Centralised repository for term sheets, offering memoranda, KYC documentation, audit reports, and regulatory filings.
White-Label Branding
Full branding customisation, your logo, your product name, your factsheet design. Investors see your brand, not the underlying infrastructure.
ETP Use Cases
ETPs serve a diverse range of institutional and professional use cases. The flexible structuring framework accommodates strategies spanning liquid markets, private assets, and hybrid approaches.
Financial Intermediary Product Launch
Independent asset managers use ETPs to launch proprietary investment strategies without the lead time and complexity of setting up a regulated fund. The ETP format provides institutional credibility, bankable access, and global distribution capabilities.
Family Office Investment Vehicles
Family offices structure ETPs to consolidate multi-asset portfolios, provide inter-generational wealth transfer vehicles, or create access products for alternative investments. The ISIN format enables seamless integration with private banking custody.
Private Credit Securitisation
Lenders and credit originators use ETPs to securitise loan portfolios, converting illiquid credit exposures into tradable, ISIN-wrapped instruments that can be distributed to institutional investors.
Wealth Management Distribution
Wealth managers and independent financial advisors use white-label ETPs to offer customised investment solutions to their high-net-worth clients. Each client relationship can have its own dedicated ETP compartment.
Cross-Border Access Products
ETPs enable investors in one jurisdiction to access strategies, funds, or asset classes in another, creating bankable feeder structures that simplify cross-border investment and custody.
Thematic & Impact Strategies
ETPs are ideal for launching thematic investment strategies, clean energy, artificial intelligence, emerging market credit, sustainable real estate, with full discretion to adapt the portfolio as opportunities evolve.
ETP Jurisdiction Comparison Table
| Criterion | Luxembourg | Guernsey | Cayman Islands |
|---|---|---|---|
| Vehicle Type | Securitisation Vehicle | Protected Cell Company | Segregated Portfolio Co. |
| Setup Timeline | 6–8 weeks | 4–6 weeks | 4–8 weeks |
| Settlement | Euroclear / Clearstream | Euroclear / Clearstream | Euroclear / DTC |
| EU Passport | ✓ | ✗ | ✗ |
| US Investor Access | Limited | Limited | ✓ (preferred) |
| Exchange Listing | Optional | Optional | Optional |
| Best For | EU institutional | Fastest route to a first ISIN | Global / US investors |
How to Launch an ETP
Launching an ETP is a securities issuance, not a fund authorisation. Eight steps take a strategy from a decision to a security trading on an exchange, and the dependencies between them are strict: an exchange will not admit a security without an approved prospectus, and a market maker will not quote one that is not yet settlement-eligible. Issued under an existing programme, the whole sequence typically runs 8–14 weeks for a listed product, or 4–8 weeks where the product is issued with an ISIN but not admitted to trading.
- 01
Define the strategy and the underlying
Fix the eligible instruments, rebalancing frequency, valuation source and currency, and decide whether the product is rules-based or discretionary.
- 02
Choose the issuer, jurisdiction and collateral structure
Select the bankruptcy-remote issuing vehicle and its jurisdiction, and decide whether the product is fully collateralised or an unsecured obligation of the issuer.
- 03
Base prospectus and approval
Launch under an approved base prospectus by filing final terms, or take a new programme through approval and passport it across the EEA.
- 04
ISIN and settlement
Obtain the ISIN and admit the security for settlement through Euroclear, Clearstream or SIX SIS so any custodian can book it.
- 05
Market maker and authorised participants
Sign the continuous two-way quoting commitment and agree the creation and redemption mechanism that anchors the price to the underlying.
- 06
Exchange listing
File for admission on SIX Swiss Exchange, Xetra or Euronext and meet that venue's disclosure and market-making standards.
- 07
Launch and seeding
Issue the first units under the final terms and deliver them into the settlement system against the seed subscription.
- 08
Ongoing lifecycle
Publish valuations, feed the indicative value, process creations and redemptions, handle corporate actions and renew the programme documentation.
The full step-by-step guide
Each step above — including the collateral decision, prospectus passporting, market-making obligations and realistic timings — is worked through in detail in our guide for asset managers.
How to Launch an ETP: Step-by-Step GuideRelated reading: listing an ETP on SIX, Xetra or Euronext, what is an ETN and which wrapper an issuer should choose.
Why Choose Noray Capital for ETP Issuance
Noray Capital combines deep structuring expertise with an integrated technology platform to deliver institutional-grade ETP issuance with speed and precision.
Multi-Jurisdiction Coverage
Issue ETPs across Luxembourg, Guernsey, and Cayman Islands with optimised jurisdiction selection for each strategy.
Integrated Platform
End-to-end lifecycle management, structuring, issuance, NAV, reporting, and investor servicing, through a single platform.
4-Week Launch
From initial consultation to ISIN allocation in as little as 4 weeks. No unnecessary delays or administrative bottlenecks.
Swiss ISIN Issuance
Issue ETPs with Swiss ISINs for seamless distribution through Swiss private banking networks.
White-Label Branding
Your brand, your product name, your factsheet design. Full customisation without visible infrastructure.
Global Settlement
Euroclear, Clearstream, and SIX SIS settlement for compatibility with all major custodians worldwide.
Terms Agreed Upfront
The scope of the mandate — what is coordinated for you and what stays with your team — is set out before anything is signed.
Dedicated Team
A dedicated structuring and operations team supporting each client through the entire ETP lifecycle.
Frequently Asked Questions
What is an Exchange-Traded Product (ETP)?
An ETP is a securitised financial instrument that trades on an exchange or is settled through central securities depositories like Euroclear. ETPs include Exchange-Traded Notes (ETNs), Actively Managed Certificates (AMCs), and other structured instruments that carry their own ISIN.
What is the difference between an ETP and an ETF?
An ETF is a regulated fund vehicle that passively tracks an index. An ETP is a broader category that includes actively managed instruments. ETPs can hold illiquid assets, private credit, and alternative investments, whereas ETFs are restricted to liquid, listed securities.
How is an ETP issued?
An ETP is issued by a Special Purpose Vehicle (SPV) as a debt security with its own ISIN. The structuring coordinator designs the legal framework, creates a ring-fenced compartment within the SPV, and registers the securities with a central depository.
What assets can be wrapped in an ETP?
ETPs can wrap virtually any asset class: listed equities and bonds, private credit, real estate debt, private equity, commodities, digital assets, and alternative strategies.
Are ETPs regulated?
ETPs are securities issued under the legal framework of the jurisdiction where the SPV is domiciled. While not a regulated fund, the issuance process, service providers, and custody arrangements are subject to regulatory oversight.
Can ETPs be listed on an exchange?
Yes. ETPs can be listed on regulated exchanges such as the Vienna Stock Exchange, SIX Swiss Exchange, or other venues. However, many ETPs operate as unlisted instruments settled through Euroclear/Clearstream.
What jurisdictions are available for ETP issuance?
The three primary jurisdictions are Luxembourg (EU-regulated securitisation vehicles), Guernsey (Protected Cell Companies), and Cayman Islands (Segregated Portfolio Companies). Each offers distinct advantages for different strategies and investor profiles.
How do I launch an ETP?
Define the strategy and underlying, select the issuer, jurisdiction and collateral structure, produce or file under a base prospectus, obtain the ISIN and settlement eligibility, appoint a market maker and authorised participants, list on an exchange if the product is to be traded, launch, and then run the lifecycle. Under an existing issuance programme this runs 8–14 weeks for a listed product and 4–8 weeks for an unlisted one.
How long does it take to launch an ETP?
Depending on the jurisdiction and complexity, an ETP can be launched in 4–8 weeks. Guernsey offers the fastest timelines (4–6 weeks), while Luxembourg issuance typically takes 6–8 weeks.
What is the minimum size for an ETP?
There is no regulatory minimum. The practical floor is the size at which a market maker can quote a sensible spread and the tracking of the underlying is not distorted by minimum trade sizes, which is why most managers launch with a committed anchor allocation rather than an empty product.
Can I issue an ETP with a Swiss ISIN?
Yes. ETPs can carry a Swiss ISIN (CH-prefix) for distribution through Swiss private banking networks, regardless of the SPV's domicile jurisdiction.
What ongoing administration is provided?
Full lifecycle administration including NAV calculation, accruals, investor reporting, factsheet generation, corporate actions, subscription/redemption processing, and Bloomberg quotation if required.
Launch Your ETP with Noray Capital
End-to-end ETP issuance, administration, and lifecycle management across Luxembourg, Guernsey, and Cayman Islands. From strategy to ISIN in as little as 4 weeks.