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Hang Seng warrants the most actively traded on SGX in November
WARRANTS on Hong Kong's Hang Seng Index were the most actively traded in November out of the 200 or so warrants available on the local bourse, the Singapore Exchange (SGX) said in a My Gateway report on Wednesday.
It added that Hang Seng warrants have continued to remain popular in the first week of December, accounting for S$48 million or 80 per cent of the total traded value in structured warrants from Dec 1 to Dec 8.
This trend comes amidst volatility in Hong Kong equities. The Hang Seng Index has been about two-thirds more volatile than Singapore's benchmark Straits Times Index (STI) over the past three years, and around one-third more volatile than the STI over the 10 years ended November 2015.
Warrants are generally used to make money from volatility. Bullish investors typically buy a call while bearish investors may buy a put warrant.
Out of the approximately 200 structured warrants available on the local exchange, there are 30 structured warrants in total that are on the Hang Seng Index and the Hang Seng China Enterprises Index, consisting of 19 calls and 11 puts. These warrants are listed by four issuers: Bank Vontobel, BNP Paribas, Macquarie and UBS.