Capital Protection Certificate on Nintendo Co Ltd and CME Group Inc

Recently US rates increased giving the opportunity to consider capital protection structured products. The following instrument has only two stocks in the basket with participation coefficient 100% and no cap on the equity price growth in three years.

Companies represent gaming and financial sectors. For the last 10 years, annual returns of Nintendo stock were 12% p.a. and CME group equity price change demonstrated around 10% return p.a. for the same period. Moreover, for the past 10 years Nintendo stock has delivered positive 3-year trailing returns around 62% of rolling 3-year windows. CME Group stock has delivered positive 3-year trailing returns over 80% of rolling 3-year windows for the same period.

Nintendo Co Ltd [Internal score 60/100] is a Japanese corporation specializing in the development of video games and gaming systems. The company is distinguished by a unique vertically integrated model that combines its own hardware platform (consoles) with an iconic, world-class library of intellectual property (IP). Its current market capitalization stands at $61.8 billion.

In the second quarter of fiscal year 2026, the company’s revenue slightly decreased by 9.5% year-over-year to $3.2 billion, while net profit for the same period almost doubled to $0.9 billion vs 0.5 bln for the same period of the previous year. Recent EBITDA margin exceeded 29% in comparison to 16% for the previous quarter. Over the past three years, the stock has posted a gain of 24% – underperforming the broader S&P 500 Consumer Discretionary index, which rose by 38% hence Nintendo stock might look undervalued.

CME Group Inc [Internal score 74/100] is a major US financial holding company that operates leading global derivatives exchanges. The company operates four key trading venues: CME (Chicago Mercantile Exchange), CBOT (Chicago Board of Trade), NYMEX (New York Mercantile Exchange), and COMEX. CME current market capitalization stands at $98.6 billion.

It should be noted that CME Group benefits from macroeconomic uncertainty. The higher the volatility in inflation, interest rates, and geopolitics, the greater the trading volumes (ADV) and fee revenue. In the second quarter of 2026, revenue rose 1.2% year-over-year to $1.7 billion, while net income increased 1.0% to $1.1 billion. FCF is positive and for the last quarter was above $900 mln. Net Income margin stays around 60% for the past 8 quarters. Over the past three years, the share price has risen 35%, underperforming the broader financial sector index (S&P 500 Financials), which gained 60% hence CME Group stock might look undervalued.

The Fed’s 16 September rate hike, combined with projections showing rates staying around current levels through 2027, should keep demand for hedging high, while CME’s record first half and second-highest August volumes show that this is already feeding through to activity ahead of its 21 October results. Nintendo also has fresh catalysts, with the Switch 2 price increase now in effect, the Zelda 40th Anniversary launch in October and half-year results due in early November. Together, these give both companies clear near-term triggers rather than relying only on their longer-term track records.