Warrants issuers battle algo predators in Hong Kong

Threat of high-frequency traders forces banks to spend big on tech

It can take years and considerable sums of money to build a warrants business in Hong Kong. The investment can begin to unravel in a mere one-millionth of a second.

The derivative warrants market in Hong Kong, with its paper-thin spreads and zero stamp duty, has long been a target for high-frequency trading firms on the hunt for fleeting differences between the price of the structured product and its underlying stock. If an issuer’s technology is not up to scratch in this market, the lost basis

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: