Frequently Asked Questions

ETPX Designated Activity Company is a special purpose company incorporated in August 2017. The company was established for the purpose of issuing multiple Series of Secured Notes under the ETPX Program. The Notes will be limited recourse obligation of the Issuer, secured on the Charged Assets.
The Notes are a debt security (an obligation of ETPX Designated Activity) and are secured by the Charged Assets purchased from the sale of Notes.
The Charged Assets can vary across different series, as they are the securities held at the custody account of the series in accordance with the investment strategy.
Any optional redemption by the Noteholder if applicable is subject to there being sufficient liquidity in the Charged Assets. No secondary market for the Notes may develop.
The value for the Charged Assets held in the custody account, net of any fees associated with the Note.
The Portfolio Manager may request the security account to be a margin account based on the investment strategy.

Security accounts held at IB may be able to trade the following: Stocks, Bonds, Options, Futures, Futures Options, Mutual Funds, Cash Forex and Complex and Leverage Structured Products.

Custody accounts held at the Bank of New York, London Branch may be able to trade the following: DTC and Euroclear eligible securities (stocks and bonds).

The investment objective varies across the different Notes and is determined by the Portfolio Manager.

Please reference the Investment Objective section of each Series page for more information, along with the section relating to the Portfolio Manager.

The Notes trade via Euroclear and Clearstream in a versus payment transaction, with a standard settlement cycle of T+2.

Please reference the trading process diagram in the ‘About’ section.

The financial condition of an issuer of Securities may cause it to default or become unable to pay interest or principal due or otherwise fail to perform. The Issuer cannot collect interest and principal payments on Securities if the issuer defaults. While the Issuer attempts to limit credit exposure in a manner consistent with its investment objective, the value of an investment in the Notes may change quickly and without warning in response to issuer defaults and changes in the credit ratings of the Issuer’s portfolio investments.
No. The most an investor can lose in a Note is the entire value of their initial investment.
No. The Notes do not guarantee against the loss of principal. The ability of the Issuer to meet its obligations in respect of the Notes will be dependent on the proceeds realized from the sale of the Charged Assets. In such event, any shortfall would be borne by the Noteholders in accordance with the priorities specified in the conditions of the Notes.

These Notes are not principal protected and are a high-risk investment in the form of a debt instrument. The Noteholders are neither assured of repayment of the capital invested nor are they assured of payment of a stated rate of interest or of any interest at all. The Notes give Noteholders exposure to certain securities and other financial assets that the Issuer may invest in acting through the Portfolio Manager.

Should the Charged Assets decrease in value, Noteholders will incur a partial or total loss of their investment. Even if the Charged Assets increase in value, Noteholders may incur a partial or total loss of their investment to the extent that the appreciation of the Charged Assets is not sufficient to account for fees, costs and expenses of the Issuer.

The investment objective carried out by the Portfolio Manager may have restrictions set out in the Portfolio Manager Agreement between the Issuer and the Portfolio Manager.

Please reference the investment objective and investment restrictions sections in the Series specific page for more details for any particular series.

The Notes will pay a coupon as set out in the appropriate section under the Conditions of the Notes.

Noteholders are not assured of payment of a stated rate of interest or of any interest at all.

Program Participant Roles

The Arranger is responsible for arranging the issue of the Notes on behalf of the Issuer and the overall coordination of the Program.
The Calculation Agent is responsible for making certain calculations in relation to the Notes, such as the Net Asset Value and interest payable by the Notes.
The Placement Agent is responsible for coordinating the subscription and redemption trades between the Issuer and the Purchaser of the Notes.
The Broker Dealer of Record is responsible for the establishment of the Issuer’s securities accounts.
The Realisation Agent is responsible for selling or procuring the sale of the charged assets and transferring the proceeds to the Issuer.
The Portfolio Manager is responsible for managing the underlying assets in accordance with the investment strategy.
The Custodian and Security Account Provider are responsible for providing custodial services to the Issuer, custody of the underlying assets.
The Trustee is responsible for maintaining and protecting the interest of the Noteholders.
The Issue Agent is responsible for coordinating the creation of Notes with Euroclear, as the central securities depository.
The Paying Agent is responsible with coordinating any payment on the Note, such as interest payments, principal repayments and maturity payments.