Overview of Collateralizable Certificates

The COSI service enables the collateralization of certificates that are listed on SIX Swiss Exchange and traded on Scoach Switzerland. A prerequisite for collateralization is the availability of relevant prices for valuation purposes.

Two categories of certificates may be collateralized:

• Certificates for which a fair market price ("fair value") can be obtained from an independent third party on a daily basis.
• All other certificates that come with capital protection (classified as capital protection products by the Swiss Association for Structured Products).

An updated list of all collateralizable product structures is available here[xls].

COSIs can be traded in more than 20 currencies. The most common are:

• Swiss franc (CHF)
• Euro (EUR)
• British pound (GBP)
• Japanese yen (JPY)
• US dollar (USD)

The term of the certificates may not exceed ten years. The issuer undertakes to market making in the certificates for the entire period in which the COSIs are admitted to trading; bid prices for a COSI must be posted in the secondary market on a continual basis. An overview of all available COSI products can be found at the Scoach website.