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Euronext Paris published a notice on
Euronext recognises two major categories, namely investment products and leveraged products. There are three segments in the first category: pure indexation, yield enhancement and capital protection; and five in the second: bear indexation, plain vanilla warrant, spreads, leverage knock out, and digital with knock out barrier. This classification structure, available on the Euronext website (www.euronext.com), will evolve as investors' needs change and issuers create new instruments.
The initiative, which seeks to make structured products more transparent, should give intermediaries and investors a clearer understanding of the risks associated with these increasingly varied and complex instruments.
For this reason, the AMF recommends that issuers of warrants and certificates should use this classification in their draft prospectuses and advertising materials, even if they are not seeking admission to listing on a Euronext marketplace.