Taiwan Warrants Mart Shuttered, Again

Domestic houses in Taiwan have shut the tap on the warrants market in protest to an outstanding tax on premiums.

  • 10 Feb 2006
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Domestic houses in Taiwan have shut the tap on the warrants market in protest to an outstanding tax on premiums. "It's been a nightmare," said Jerry Wu, head of equity derivatives at KGI Securities in Hong Kong. The dispute stems from taxation on the full premium of a warrant issue, whereas market officials noted that much of the money received in issuing warrants is used for trading shares to delta hedge the position. As a result, domestic houses have had to issue warrants at a loss just in order to keep the market going in the past few years. "In terms of strategy, you need to continue to play a roll and keep the customers involved," said Wu.

The market went on strike over the matter for almost five months in 2004, and resumed issuance after talks with tax authorities moved forward although there was no final resolution. While last year was a record year in terms of issuance with 878 offerings, it was decided by a group of more than 20 financial institutions to strike again, which kicked off last month. Equity participants said the warrant market will remain on hold until the dispute is settled.

The matter is expected to be on the agenda of a committee comprised of national legislators when they next meet in March and participants have their fingers crossed a ruling in their favor will be reached. "We hope that in keeping with the trend of market de-regulation, this tax will be changed," said a trader at a domestic house. Officials at the Ministry of Finance declined to comment.

  • 10 Feb 2006

All International Bonds

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 Citi 318,645.99 1207 8.88%
2 JPMorgan 291,870.93 1330 8.14%
3 Bank of America Merrill Lynch 285,392.08 993 7.95%
4 Goldman Sachs 218,480.36 718 6.09%
5 Barclays 210,235.01 814 5.86%

Bookrunners of All Syndicated Loans EMEA

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 HSBC 33,092.37 151 6.77%
2 Deutsche Bank 33,007.84 106 6.75%
3 Bank of America Merrill Lynch 29,018.73 86 5.94%
4 BNP Paribas 25,718.39 146 5.26%
5 Credit Agricole CIB 22,722.30 133 4.65%

Bookrunners of all EMEA ECM Issuance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 JPMorgan 18,707.17 72 9.33%
2 Morgan Stanley 15,215.44 76 7.59%
3 UBS 14,195.29 55 7.08%
4 Citi 14,014.57 86 6.99%
5 Goldman Sachs 12,113.98 67 6.04%