Ashton says: “Initially, we’re listing 11 equity-linked certificates – known as zero-strike participation certificates – linked to equity indexes, including country indexes, regional country indexes and customised, theme-based indexes.”
Zero-strike certificates – or 'zero certs' – are equivalent to full investment in the underlying, says Ashton. "They take the form of a European-style, cash-settled call warrant, with an exercise price of zero, hence the term 'zero strike'. So we have a highly transparent, non-leveraged product that does not have the costly effect of implied volatility."
ABN Amro has also hired Justine Li as an assistant director in the private investor products group in Hong Kong. Li, who also joins from Calyon, will sell exotic equity flow products.