Participation certificates

PX-TRnet participation certificate

The PX-TR index is the official total return index of the Prague Stock Exchange. It is a free float weighted total return index made up of the most liquid stocks. It is calculated in real time and takes into account gross dividends. Link to index: PX-TRnet | Prague Stock Exchange

Participation PX-TRnet certificate price = PX-TRnet value x RATIO x MANAGEMENT FACTOR

The RATIO is a fixed coefficient determined at the time of issue of the certificate, which is used to adjust the nominal price of the participation certificate.
The MANAGEMENT FACTOR is a dynamic coefficient which, from the date of issue (100%), is gradually reduced by the daily proportionate part of the annual management fee, thereby continuously adjusting the price of the participation certificate.
The certificate has an open end maturity. Termination is possible in accordance with our Prospectus / Final Terms.
The performance (price) of this PX-TRnet participation certificate depends on the performance (value) of the PX-TRnet index multiplied by the current ratio and the management factor.

WTI/BRENT CRUDE / NATURAL GAS / e-mini S&P500 / e-mini DJI / e-mini NASDAQ100 / GOLD Future / SILVER Future participation certificates

Participation certificate price = nearest futures contract price x RATIO x USDCZK. 

DAX participation certificate  

DAX participation certificate price = nearest futures contract price x RATIO x EURCZK.  

Thus, the performance of the participation certificate depends on the performance of the futures contract, RATIO and USDCZK/EURCZK FX rate. The certificate always tracks the nearest futures contract on the relevant stock exchange NYMEX/ICE/CME/CBT/EUREX/COMEX. Of course, the certificate has an unlimited maturity date. Therefore, the so-called roll-over or rolling contract must take place regularly shortly before the expiry of the nearest futures contract.   

Rolling means that the expiring futures contract is sold and the nearest futures contract is purchased. During rolling a change to the RATIO may arise and usually arises. On the one hand, rolling is burdened by selling and buying costs of futures contracts and on the other hand, losses or gains may be implemented.   
Gains arise during rolling when the price of the expiring futures contract is higher than the price of the new futures contract (so-called backwardation). More may be invested in the new futures and the RATIO rises.   
Losses during rolling will arise when the price of the expiring futures contract is lower than the price of the new futures contract (so-called contango). And therefore less may be invested in the new futures and the RATIO falls.   
The higher the RATIO, the more the client participates in the rise of the futures contract.   
The rise of the USDCZK/EURCZK exchange rate (so-called weakening of the crown against USD/against EUR) supports the rise of the certificate price. And on the contrary, the fall in the USDCZK/EURCZK exchange rate (so-called strengthening of the crown against USD/EUR) supports the fall in the certificate price.