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Structured Warrants

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Structured Warrants
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Structured warrants are proprietary instruments issued by a third-party issuer, namely an eligible broker or financial institution that give holders the right, but not the obligation, to buy or sell the underlying instrument in the future for a fixed price. Essentially, you are making a 'reservation' to buy or sell a pre-determined number of the underlying instrument at a certain price in the future when you invest in a structured warrant.

Structured warrants can be issued over an underlying asset such as share, Exchange Traded Funds (ETF), index or a basket of shares.

Types of Structured Warrants

Call Warrants

Gives holder right to buy the underlying share at a specified price within a limited period of time.

Put Warrants

Gives holder right to sell the underlying share at a specified price within a limited period of time.

Callable Bull/Bear Certificates (CBBC)

CBBC tracks the performance of an underlying stock without requiring investors to pay the full price required to own the actual stock. They are issued either as Bull or Bear certificates with a fixed expiry date, allowing investors to take bullish or bearish positions on the underlying stock with the possibility of an early termination before the expiry date when the underlying moves in contrary direction to investors' expectations.

  • View comparison of different types of Structured Warrants

    Comparison of different types of Structured Warrants

    comparison of different types of Structured Warrants
     Call WarrantsPut WarrantsCallable Bull/Bear Certificates (CBBC)
    Issuer Eligible brokers or financial institutions
    Underlying Instrument 1 underlying instrument (share, ETF or index) 1 underlying instrument (share, ETF or index) 1 underlying instrument (share, ETF or index)
    Dilution of underlying shares No new shares issued
    Expiry Period 6 months to 5 years 6 months to 5 years 3 months to 5 years
    Expiration date Fixed Fixed Fixed – also possible for early termination when the price/level of the underlying instrument reaches the ‘Call Price’.
    Settlement price/level at expiry Shares/ETF:-
    Closing price 1 market day before expiry; OR 5-days volume weighted average before expiry; OR 5-day average closing prices before expiry

    Index:- Index closing or average index levels or settlement price of index futures expiring in same month

    At expiry:-
    Shares/ETF:- Closing price 1 market day before expiry; OR 5-days volume weighted average before expiry; OR 5-day average closing prices before expiry
    Index:- Index closing or average index levels or settlement price of index futures expiring in same month
    Upon MCE:-
    Shares/ETF:- Lowest/highest price of the underlying in the next trading session (Main Trading Phase)
    Index:- Index level expiring in the same month
    Settlement method Delivery of underlying shares or cash Cash only
  • How to identify the type of Structured Warrants?

    Identify the type of Structured Warrants

    Stock Code

    You can differentiate the structured warrants with reference to the 5th character of the stock code.

    The format of the stock code is as follows:-

    • 1st 4 characters - stock code of the underlying share/ETF
    • 5th characters - type of structured warrants
    • 6th characters - sequence/number of listing

    The code representing the types of structured warrant are as follows:-

    Type of Structured Warrants
    CodeType of Structured Warrants
    C Call Warrant
    H Put Warrant
    J CBBC – Callable Bull Certificate (Call)
    K CBBC – Callable Bear Certificate (Put)

    Examples:-

    • Bursa Call Warrant would have the stock code "1818 CA" and stock short name "Bursa- CA",
    • Bursa Put Warrant would have the stock code as "1818 HA" and stock short name "Bursa- HA"
    • Bursa Callable Bull Certificate (CBBC Bull) would carry the stock code "1818 JA" and stock short name "Bursa- JA".
    • Bursa Callable Bear Certificate (CBBC Bear) would carry the stock code "1818 KA" and stock short name "Bursa- KA"

Information for Issuers

  • For rules on Structured Warrants, please click into Chapter 5 of the Main Market Listing Requirements.
  • For listing procedures on Structured Warrants, please see Practice Note 27 of the Main Market Listing Requirements.

Issuers Websites

For further information on structured warrants, you may wish to access the websites of Malaysian issuers as follows:-