Oslo Børs will introduce the listing of warrants on Wednesday 25 July, when warrants issued by Svenska Handelsbanken AB in the shares of Norsk Hydro will be admitted to listing. This product will take the form of European style call options. Svenska Handelsbanken currently issues 304 warrants that are listed on Stockholmsbörsen, comprising 299 warrants in individual shares and 5 warrants related to baskets of shares. Svenska Handelsbanken is one of the largest players in the Norwegian securities market and is the leading player in the Swedish warrants market. Svenska Handelsbanken has indicated that it also wishes to be an active player in this area in the Norwegian market.
A number of investors have advised Oslo Børs of their interest in seeing this product introduced in the Norwegian market, principally on the basis of shares in Norwegian listed companies as the underlying instrument. A number of financial institutions are now making detailed arrangements for the listing of warrants in listed securities. This applies to warrants issued by parties other than the issuer of the underlying security.
Stockholmsbörsen has listed warrants since September 1994, and almost 1,400 warrants are now listed, principally with shares listed on Stockholmsbörsen as the underlying instrument.
Oslo Børs requires that listed warrants shall have a term of two years or more in order to differentiate this product from the derivative products traded in the standardised market. Issuers will be able to list both European style warrants (warrants that can be exercised only on the expiry date) and American style warrants (warrants that can be exercised on any trading day up to and including the expiry date).
A characteristic feature of warrants is that they give the right to buy or sell a particular share at a pre-determined price. Whilst warrants often entitle the issuer to settle by cash payment, they are based on the physical delivery of the underlying shares. Warrants do not enjoy any shareholder rights.
Warrants are normally issued by a financial institution and are traded in the secondary market in the same way as shares. The institution that issues a warrant is the counterparty when the warrant is exercised.
Further information on the warrants to be listed on Oslo Børs can be found in the individual prospectuses.
Details of the fees applicable to the listing of warrants can be found at: www.ose.no/avgifter
