Covered Warrants
Information
Covered warrants can give you the high potential returns of a geared investment, while limiting the possible downside to the initial investment.
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Covered warrants offer member firms, whether as issuers or brokers, an exciting new product and the opportunity to develop a new, profitable line of business.
Benefits of Listing & Admission to a Regulated Market
- Admission to the London Stock Exchange’s Main Market, an EU-Regulated Market under MiFID, ensures highest standards of disclosure and regulatory oversight.
- Transparency offered by continuous market maker quoting on electronic order-book.
- Added flexibility of off-book trading on-exchange.
- Price and trading data disseminated to over 140K terminals worldwide in addition to end investors worldwide via Exchange data feeds, ensuring global reach.
- Allows product providers to leverage the London Stock Exchange’s extensive distribution.
Market Model
- Covered warrants trade in an electronic, order-driven trading service where the market maker, who is also the issuer, is obliged to provide two-way prices at a minimum size and maximum spread throughout the trading day and for the lifetime of the instrument.
- ‘Off-book’ instruments are also supported which are available for trade reporting only. Participants wanting to trade these instruments should contact the issuer directly.
- Trades are normally cash settled bilaterally between participants.