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11 structured certificates issued by Raiffeisen Centrobank were introduced to the WSE on 9 July. As a result, the number of all structured products listed in Warsaw grew to 38. The total value at par of the new certificates is around PLN 150 million and their volume is 4.57 million. All certificates are listed in PLN on the parallel market.
The following were introduced to trading:
- 9 open-end regular structured certificates (undetermined maturity);
- 1 short structured certificate (the underlying instrument is Brent Crude Oil Inverse Performance, undetermined maturity);
- 1 bonus structured certificate with determined maturity (13.12.2010, Brent Crude Oil certificate).
Regular Structured Certificates
The regular structured certificates use the following underlying instruments:
- Nikkei225® index – the certificate tracks the Nikkei225® index comprising 225 largest stocks on the Tokyo Stock Exchange;
- Nasdaq-100® index - the certificate tracks the Nasdaq-100® index on NASDAQ (100 largest stocks);
- Precious Metal Basket (including gold, palladium, platinum, silver) - the certificate tracks the price of the basket; initially each metal has a weight of 25%. The basket is priced since 09.09.2004 based on Reuters quotations;
- Silver - the certificate tracks the price of silver. The price of the certificate is based on the silver fixing price per troy ounce quoted by Reuters XAGFIX;
- Soft Commodity Basket Focus Bioenergy (including wheat, maize, sugar, rape) - the certificate tracks the price of the basket; initially each commodity has a weight of 25%. The prices of wheat and maize are based on CBOT futures contracts quotations, the price of sugar is based on New York Board of Trade (NYBOT) futures contracts quotations, and the price of rape is based on NYSE EURONEXT LIFFE futures contracts quotations;
- Soft Commodity Basket Focus Food (including coffee, cocoa, sugar, soy and wheat) - the certificate tracks the price of the basket; initially each commodity has a weight of 20%. The prices of coffee, cocoa and sugar are based on NYBOT futures contracts quotations, the prices of soy and wheat are based on CBOT futures contracts quotations;
- Sugar - the certificate tracks the prices of NYBOT sugar futures contracts (the most liquid contract series);
- Cocoa - the certificate tracks the prices of NYBOT cocoa futures contracts (the most liquid contract series);
- Coffee - the certificate tracks the prices of NYBOT coffee futures contracts (the most liquid contract series).
Short Structured Certificates
The short structured certificates allow investors to profit from a decrease in the price of the underlying instrument. The ratio of the return to the decrease in the price of the underlying instrument is 1:1.
The Brent Crude Oil Inverse Performance short certificate tracks in reverse the price of Brent Crude Oil futures contracts quoted on London’s ICE. It is an open-end certificate (undetermined maturity).
Bonus Certificates
The bonus structured certificates offer the possibility of earning a pre-defined bonus above the certificate issue price. The maximum bonus depends on the price of the underlying instrument at the time of determining the final settlement price. If the price of the underlying instrument is above the bonus level, the investor gets a bonus whose ratio to the increase in price is 1:1.
The underlying instrument of the Brent Crude Oil certificates is the price of Brent Crude Oil futures contracts quoted on ICE.
In H1 2008, the value of trading in all structured instruments was close to PLN 72 million. By comparison, the value of trading was over PLN 25 million in all of 2007. In total, 26 new structured products have been introduced to the WSE year to date. The WSE currently lists 38 structured instruments.
