Bucharest, June 7 /Agerpres/ - The Bucharest Stock Exchange (BVB) opened its Tuesday trading session with a new instrument, the warrant - a security issued by financial institutions and having other underlying financial instruments or assets and linked to the performance thereof, shows the information published on the institution's website.
"The investor who buys a warrant has the right (but not the obligation) to buy or sell the underlying asset for a fixed price (the exercise price). These features render warrants similar to options. In fact, warrants contain elements specific to options and investors may think that they are traded through procedures specific to derivatives. In reality, warrants are being traded on spot markets, just as the shares (without the use of margin accounts or margin calls). Usually warrants are issued with a specific maturity of up to one year, but the issuer may also set longer maturities," reads a Stock Exchange release to AGERPRES.
Some 30 warrants having as underlying instruments shares in Banca Transilvania, BRD-Groupe Societe Generale, Electrica, the Proprietatea Fund, OMV Petrom, Romgaz, the EURO STOXX 50 and ROTX EUR indices, or commodities like gold were available through market-making services offered by Raiffeisen Centrobank.
According to Tradeville brokerage house Ovidiu Dumitrescu, transactions totalled less than 5,000 euros by 17.00 on Tuesday, but at least one transaction was registered for more than half of the new instruments. "The clients need an period of accommodation with the trading and evaluation mechanisms," he explained. AGERPRES (RO - author: Florin Barbuta, editor: Andreea Marinescu; EN - author: Simona Klodnischi, editor: Marius Hosu)
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