UBS is making a foray into Hong Kong's warrant market, looking to expand its product range for retail clients. The instruments may also be picked up by other equity derivative houses in Europe and Asia, which use warrants as a way to sell volatility on the back of buying vol for their structured notes business.
Min Park, managing director and head of Asian equity risk management at UBS in Hong Kong, said, "Adding this product will complement our existing product range." The firm recently began a soft launch and will officially kick off the business in September. "Retail investors can benefit from our competitive pricing and the overall efficiency and scale of UBS' equity derivatives franchise," added Park.
Goldman Sachs is also looking to enter the warrants business in Hong Kong in the coming months and is putting a desk in place for the initiative (DW, 7/8).
