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• 117 new financial instruments newly listed on the Warsaw Stock Exchange within a day
• 90 option warrants enable new investment strategies
• 27 structured certificates (bonus and discount certificates)
As of 21 July 2011, investors on the Warsaw Stock Exchange can trade in warrants and new series of structured certificates issued by Raiffeisen Centrobank AG.
The warrants introduced to exchange trading (74 call warrants and 16 put warrants) are American warrants based on Polish assets: the indices WIG20 and WIG as well as shares of PEKAO SA, PKO BP, KGHM, PGNiG, PGE, PKN ORLEN, PZU SA, TAURON, TP SA, PETROLINVEST. Raiffeisen Centrobank is both the issuer of the new securities and their market maker providing continuous quotations. With their transparency, low unit price and simple trading structure akin to shares, warrants can be an interesting choice for both institutional and individual investors.
The new structured certificates introduced to trading on 21 July are based on the prices of shares listed on the WSE and the WIG20 index. They are new structured products issued by the Austrian investment bank and listed on the Warsaw Stock Exchange.
Warrants
Warrants are financial instruments whose price depends on the price or value of the underlying instrument: shares, bonds, indices, interest rates, fx rates, etc. Warrants are cash market instruments with some features of derivatives. Their properties make them similar to options, but unlike options warrants have an issuer.
Option warrants can be issued by banks and other financial institutions, for instance brokers, on shares of public companies, exchange indices, etc.
To learn more about warrants, visit www.gpw.pl/warranty
Structured certificates
Bonus certificates offer additional gains as long as the price of the underlying is above the barrier. If the price falls below the barrier, the performance of a certificates tracks the performance of the underlying asset in exact proportion. Upon issuance, the price of a bonus certificate equal the price of the underlying instrument.
Discount certificates are purchased at a price discount. This means that initial investment in a discount certificate is made at a price lower than investment in the corresponding underlying asset. This creates a safety margin between the price of the underlying asset and the price of the certificate. This structure is best fit for markets in a lateral trend or a modest uptrend or downtrend.
For more information visit: www.gpw.pl/raiffeisen_centrobank_dokumenty_do_pobrania_
are yet another new type of financial instruments after ETFs to enrich the choice of investment opportunities for WSE investors this year. The introduction of new products to trading is also an important part of building the competitive advantage of the Polish stock exchange compared to other capital markets.
