Trading in these products have increased fivefold over the last five years since 1999, from 196 million Euros' worth of traded premiums that year to 1.06 bn Euros in 2001. The trading of premiums up to last October 31 amounted to 931 millions and the number of warrants traded came in at 2.06 bn Euros, which represents increases compared to the same period last year of 9.5% and 50.3% respectively.
The growth achieved by this market. as well as the demand this products have generated over the last few years, has made necessary the development of this new application. It will provide market participants, issuers, members and investors with easy, dynamic and transparent access to trading as well as specific information on these products.
Trading on the new platform will be carried out through an electronic blind market on a continuous basis from 9:00 to 17:30. Through the market, specialist members issuers will be able to post call and put orders on the market continuously and in real time, according to the evolution of the linked underlying assets. Traders will also be able to place their orders through approved external facilities and SIBE terminals. The system will also provide detailed information on the products as well as volumes and prices.
Trading in warrants on the Madrid Stock Exchange began in 1995. Since then the number of warrant certificates issued has been increasing, achieving a spectacular growth over the last two years from 199 at the end of 1999 to 1,535 as of 31 October 2002. This year 1,130 new issues have been admitted to trading and more certificates are being be issued over the next few days.
This growth in the number of warrants admitted to trading has run parallel with an increase in the number of issuers in the market. Over the last few years, apart from the two issuers already operating in the market since its start, Citibank and Société Générale, three more Spanish financial corporations have joined the market, namely, Banesto, SCH and BBVA and three European issuers with a solid presence in these markets, namely UBS, Commerzbank and BNP Paribas.
