Cfinancials
Big Data Technology for Investor Protection

TIPER®

  1. TIPER® is a big data technology-driven Security Indicator that allows investors to place an objective, real-time value on the actual and future loss potential of any financial product in the world.
  2. TIPER® indicates the risk (degree of loss potential) of a product by taking into account market facts such as:
    Market factors which influence the TIPER
  3. TIPER® combines mathematical modeling, market facts, product intelligence and uses the latest big data technology to generate a single evaluation between 0.00%-99.99% (high to low loss potential).
  4. TIPER® considers products characteristics such as future risk, contagion and systemic risk critical to Investor Protection.
  5. A financial product trades at a 59% TIPER® - this means the market accepts the product with a 59% security level based on its optimal level.

TIPER® on the Swiss Market by cfinancials.com

The Security Indicator on a scale of 0% to 99.99%, high to low product risk with End of Day evaluation (16.10.2017).

ABB             66.85 %                   Geberit             92.78 %                   Schindler             96.19 %                  
Actelion             22.21 %                   Givaudan             96.38 %                   Schmolz+Bicken.             0.89 %                  
Addex             0.03 %                   Holcim             40.67 %                   SGS             92.07 %                  
Adecco             74.36 %                   Julius Baer             98.12 %                   Sika             92.43 %                  
Airesis             0.01 %                   Kudelski             4.69 %                   Sonova             95.01 %                  
Alpha Pet             0.01 %                   Kuehne+Nagel             84.22 %                   Sulzer             70.27 %                  
Arbonia             5.09 %                   Logitech             93.26 %                   Swatch Group             65.66 %                  
Aryzta             45.44 %                   Lonza             92.48 %                   Swiss Life             94.36 %                  
Ascom             76.36 %                   Meyer Burger             3.89 %                   Swiss Prime Site             99.99 %                  
Baloise             95.49 %                   National Ver.             13.45 %                   Swiss RE             72.34 %                  
Basilea             17.09 %                   Nestle             94.66 %                   Swisscom             97.28 %                  
Cembra             95.35 %                   Nobel Biocare             0.45 %                   Swisslog             0.01 %                  
Clariant             98.51 %                   Novartis             99.99 %                   Syngenta             11.45 %                  
Credit Suisse             20.82 %                   OC Oerlikon             13.50 %                   Transocean             1.61 %                  
Dufry             92.19 %                   Orascom             1.44 %                   UBS             14.78 %                  
Evolva             0.11 %                   Richemont             86.48 %                   Zurich Insurance             71.49 %                  
GAM             86.11 %                   Roche             91.08 %                    

For more information: Contact us.

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How Does TIPER® Work!

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TIPER® Specifications

Purpose:

  1. The evaluation must indicate objectively the risk (degree of loss potential) of a product at a specific time. (i.e. how much loss potential am I facing / what is the investment quality of this product)

Function:

  1. The evaluation must indicate the risk level of a product (i.e. what is my specific loss potential at this time)
  2. The evaluation must indicate a degree of loss potential. (i.e. a rise in the security level from 0% to 33% means the degree of loss potential has decreased by 1/3)
  3. The evaluation must be expressed as a single security level. (i.e. 0-100)
  4. The evaluation must be comprehensible to the layman. (i.e. expressed as a percentage)
  5. Any absolute evaluation value must indicate the same risk level across all product categories. (i.e. a 45% security level must have the same significance/meaning for bonds as for structured products)
  6. Any variation of the evaluation value must indicate the same variation of the risk level across all product categories. (i.e. a drop in the security level from 100% to 50% shall be understood in a way that the risk level of the product has been increased by half for any product)
  7. The evaluation must be based on real time data to be able to express itself in real time with streaming capacity. (i.e. continuous real time / live information)

Technicals:

  1. The evaluation must take into account any change in market facts. (i.e. price, liquidity, volatility)
  2. The evaluation must take into account the following market facts: price, liquidity, volatility, no data.
  3. The evaluation must take into account the function / components of a product. (ie. structured products, hybrids and derivatives)
  4. The evaluation must also be applied to the underlying(s) of a product when the underlying(s) is/are categorized as a retail investment product (i.e. funds, structured products)
  5. The evaluation provider must be able to indicate the cause(s) of an important increase or decrease in the risk level of a financial product. (i.e. price, liquidity, volatility)
  6. The evaluation provider must be able to justify the value and variation of the security level to the authorities.

Issuance:

  1. The evaluation must be produced by an independent party not involved in the transaction, recommendation, analysis or issuance of financial products.

Application:

  1. The evaluation value, date and time must be displayed next to the product.(i.e. Siemens Share 76% 2015-12-17 17:30:00)
  2. The evaluation must be shown, mentioned and explained to the client when discussing an investment
  3. The evaluation history must be easily accessible with at least 3 years history when available
  4. The evaluation must be updated at least once daily.

Legal Compliance MiFID II / Investor Protection

Conformity:

  1. TIPER® follows the MiFID II regime since 2011 allowing it to represent a true interpretation of the directives.
  2. The wording, definition, meaning and context of TIPER® product specifications and concept is 100% in line with MiFID II / Investor Protection delegated directives.
  3. TIPER® considers products characteristics such as future risk, contagion and systemic risk critical to Investor Protection.
  4. Influential MiFID II Legislators and Regulators consider TIPER® as a true solution to Investor Protection.

MiFID II Product Manufacturers and Distributors

Article 16 (3) of MiFID II requires product manufactures to "maintain, operate and review a process for the approval of a new financial instrument and significant adaptations of existing financial instruments". It "shall specify an identified target market of end clients within the relevant category of clients for each financial instrument and shall ensure that all relevant risks to such identified target market are assessed and that the intended distribution strategy is consistent with the identified target market". Furthermore, the financial instruments that are manufactured must be reviewed regularly.

Product governance rules apply to all products sold on primary and secondary markets, irrespective of the type of product or service provided and of the requirements applicable at point of sale” (cf. recital 18). Article 9 of this delegated directive comes with a whole range of precise requirements to be fulfilled by all product manufactures.

Relevant links to MiFID II (2015)

  1. Link to the Official Journal (L 173/349):
    http://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32014R1286&from=EN
  2. Link to ESMA Homepage:
    http://www.esma.europa.eu/page/Markets-Financial-Instruments-Directive-MiFID-II
  3. Link to European Council’s approval of the final compromise text:
    http://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32014R1286&from=EN
  4. Link to the Official Journal (L 352):
    http://www.cfinancials.com/EU-OJ-L352.pdf