Dealers react to mass knocking out of popular retail equity derivatives
Autocallable knock-in levels under pressure but losses averted
China fears, not Grexit, see Hong Kong market rattled more than peer indexes
Call option volumes trebled in April as bourse hits multi-year highets boom
Volatility spikes from 15 to 20 points after pro-democracy protests
Indexes fail to recover in time to trigger kickout and additional returns
Misunderstanding of the correlation between global levels of volatility leading Asian investors to place too much faith in Vix, according to Edhec Risk Institute
Penser is partial to protection
Asia’s volatility products are not yet liquid enough to draw local investors away from the CBOE Vix
Looking beyond the border
Two ways to win
China leads the way as UK structured product providers try new underlyings
Hong Kong will get a real-time VIX index in the first quarter next year, according to Hang Seng Indexes.
A change of regime
An unfavourable pricing environment and investor caution is resulting in a series of familiar structures in the UK market. A few variations in underlying are evident but all come back to income
Hong Kong Exchange and Clearing looks set to join rival Singapore Exchange in offering dividend futures contracts
This JP Morgan product from November 2008 linked to a basket of four Asian indexes and promised a 2.05% quarterly income payment. In the event of a kickout, however, capital was placed at risk and the amount returned to investors would depend on the worst-performing...
Hang Seng Bank, the 60% owned Hong Kong subsidiary of HSBC, saw profits slide after heavy bad debt costs in 2008, including the write-off of all its Washington Mutual bonds.
French investment bank SG, part of Société Générale, will offer UK retail investors exposure to the performance of Chinese equities from tomorrow with the launch of a new warrant linked to the Hang Seng index.
A fault in the system of Swedish software company, OM Gruppen, was to blame for a temporary failure of the Hong Kong Exchanges and Clearings’ (HKEx) futures and options trading system last Thursday, the exchange has revealed.