NDX is an entirely new market for trading in warrants. Initially, Svenska Handelsbanken will issue six Hit warrants, two each for Nokia, H&M, and Skandia.
International interest.
"We are launching the listing on NDX with a new type of warrant for the Nordic market" says Peter
Frösell, Handelsbanken Capital Markets. Interest in derivatives and structured products is growing
both in Sweden and internationally.
- "The fact that NDX is being launched now is the result of our long-term strategy to create and
aggregate systems and expertise which meet the demands of the market and the times", says Ulf
Cederin, CEO of Nordic Growth Market, NGM.
General information about Hit warrants.
A Hit warrant is a warrant in which the underlying asset must reach a pre-determined hit level in order for a payment to be made to the holder. The Hit warrant is designed such that if the price of the underlying asset reaches the defined hit level, trading in the Hit warrant terminates and payment is triggered (a hit amount) from the issuer to the holder. The size of the hit amount is stated in the prospectus and is paid per warrant.
The warrant is designed such that the exercise date for a Hit warrant is not defined. The exercise date either falls on the date stated in the prospectus as the expiration date or the day on which the price of the underlying asset reaches the stated hit level. This also means that the Hit warrant can only have one of two values on the exercise date, either zero or the hit amount. A Hit warrant is actually a simpler product than an ordinary warrant. If the underlying asset reaches up, or down, to a predetermined level, the issuer pays out a predetermined amount.
The Hit warrants being listed on NDX initially are Hit warrants up and Hit warrants down for the three above-stated underlying assets.
For prospectuses and more information regarding Hit warrants, go to www.ndx.se and www.ndx.nu, where information regarding the new instruments will be available at the time of launch and to Handelsbanken's website for warrants where information will be available as soon as possible.