ABN AMRO and Deutsche Bank are looking to issue warrants in Taiwan for the first time before year-end after recently receiving licenses from the Securities and Futures Commission. "There's definitely demand," said an official at ABN. "They're big names and should attract investors", said Ching-Pin Liou, head of derivatives at Yuan Ta Securities in Taipei, a domestic warrant issuer.
Merrill Lynch and Société Générale are the only international firms to have Taiwan warrant licenses at the moment (DW, 10/21). Liou added that warrant issuance has slowed in recent months to about four or five warrants per month, given the poor performance of global equities. He noted that with more international players joining the fray, the market could easily pick up by 10 to 20%. Minimum lot sizes are 20,000 shares.
A trader at Deutsche Bank said the firm will likely issue warrants before year end, declining further comment.