Kuala Lumpur, 22 October 2014
Macquarie Capital Securities (Malaysia) Sdn. Bhd. (“Macquarie”), today announced the launch of its first Structured Warrants on the Bursa Malaysia. Macquarie’s first issuance will be over AirAsia X, Berjaya Corp, DRB-Hicom, Hong Leong Industries, Inari Amertron, KNM Group, and MY E.G.
“Macquarie has a long history of participation in the warrant markets and was the first issuer to launch a structured warrant in the Asia-Pacific in 1991,” said Barnaby Matthews, Head of Derivatives for Macquarie in South East Asia.
“Malaysia has a large and growing base of retail investors that are well suited to warrants. We believe that Macquarie can make a positive contribution towards the growth of the warrant market in Malaysia, and will be working closely with the Bursa and the local brokerages to develop the market”, said Mr Matthews.
As the only issuer with an active presence in more than two warrant markets, Macquarie is currently the leading warrant issuer in the Asia-Pacific. Macquarie has a leading market share in Hong Kong, Singapore and Thailand, with one of the region’s most advanced trading systems. This system enables Macquarie to provide tight and liquid markets for investors to easily enter and exit their trades.
Macquarie has also built a reputation in the warrants market for providing transparent pricing, and will introduce a new “live price matrix” tool to the Malaysian market via its website. This tool is directly linked to the trading system and will show investors exactly how the warrant price moves in line with the stock throughout the day, a first for Malaysia.
In another first for the Malaysian market, Macquarie will publish its buy and sell flows in warrants on their website each week, enabling investors to see what others are buying and selling.
Macquarie is listing a total of 32 warrants in the two weeks after launch with plans to
launch more in the coming months. Macquarie also plans to develop index warrants, which are still comparatively undeveloped in Malaysia. Typically index warrants contribute more than 50% of the daily warrant turnover in a warrant market.
“Macquarie takes a leading role in educating retail investors about how to invest in warrants” said Eric Tan, Head of Warrant Sales for Macquarie Securities Malaysia. “We will be conducting regular educational seminars and have launched a state-of-the-art website, malaysiawarrants.com.my, with the latest tools and information, which is free for warrant investors in Malaysia.”
Dato’ Tajuddin Atan, Chief Executive Officer of Bursa Malaysia, said, “Bursa Malaysia is pleased that Macquarie is expanding its Malaysian franchise to include the equity derivatives business. We are also encouraged by Macquarie's commitment to investor education and hope that the presence of Macquarie as a warrant issuer in Malaysia will contribute to the vibrancy of our capital market.
“Building depth and diversity as well as elevating the quality of products is key to the success of any Exchange. However, if Malaysian investors can access other markets, indexes and assets without the risks of going offshore, that would certainly add to the appeal of the local marketplace. And this is where equity derivatives, specifically structured warrants, can play a part”, said Dato’ Tajuddin.
Macquarie Capital Securities (Malaysia) Sdn Bhd has been conducting financial and investment services businesses in Malaysia since 1996 as an affiliated company of Macquarie Group Limited, and has been granted licenses to conduct securities businesses in Malaysia.
Macquarie Capital Securities (Malaysia) Sdn. Bhd. is not an authorised deposit-taking institution for the purposes of the Banking Act 1959 (Cth), and its obligations do not represent deposits or other liabilities of Macquarie Bank Limited ABN 46 008 583 542 (MBL). Neither MBL nor any other Macquarie Group entity guarantees or otherwise provides assurances in respect of the obligations of Macquarie Capital Securities (Malaysia) Sdn. Bhd.