Structured warrants segment growing nicely

STRUCTURED warrants have had somewhat of a chequered past in the local stock market. When they were first launched here in the early 1990s, interest fizzled out after a short time, most probably because traders here didn't fully understand the product and possibly because quotes from issuers that doubled as market makers were perhaps not as attractive as they could have been.

The segment was revived in the early 2000s and after a patchy decade or so is now an integral part of the local stock market. So much so that on Thursday last week, turnover in structured warrants amounted to S$160 million, the highest one-day haul in 10 years.

A big reason for this growth is the efforts of the biggest issuer, Macquarie Bank, which has stayed the course over the past decade and has been unwavering in its commitment to provide high-quality service to traders in terms of competitive bid and ask spreads.