ABN AMRO has re-entered the Hong Kong warrants market and is preparing a flurry of issues across various asset classes. "We're here to change the landscape," said Rupertus Rothenhaeuser, Asian head of private investor products in Hong Kong. ABN pulled out of the Hong Kong warrant market in 2003 when the local market slumped under concern of the SARS outbreak. "Equity warrants are a very cyclical business, we're looking to do something different," he added, also noting the continued suppressed levels of volatility which have been affecting this market. This time around ABN is looking to shift away from equity-linked underlying, which account for around 99.6% of the USD67 billion warrant market. Rothenhaeuser said it is issuing warrants on gold, oil, regional and major currencies, among other commodities. "We're looking to launch around 150 warrants this year and potentially more than 300 next year," he added.
In addition to the Hong Kong market, Rothenhaeuser said the firm is next targeting Singapore and is looking to launch its first product later this year.
Separately, the firm has hired Matthew Wong, head of equity derivatives trading at Fortis Bank in Hong Kong, for a similar role at ABN.
