News

Structured products

Warsaw, 12 September 2012

WSE Adds New Factor Certificates to Its Offer.

Press Release

• The Warsaw Stock Exchange has added 237 new structured products to its offer.
  
• The new products include turbo certificates, trackers, WIG20 warrants, as well as factor certificates, which are new on the WSE and allow investments with a fixed leverage in commodities and exchange indices.
  
• By expanding its offer, the WSE becomes even more competitive to other exchanges in the region and consolidates its position as the most diversified CEE market.

On 12 September 2012, 237 structured products issued by Raiffeisen Centrobank AG were newly listed on the Warsaw Stock Exchange, significantly expanding opportunities for investors to invest in instruments based on commodities as well as exchange indices: EURO STOXX50, WIG20 and DAX. Factor certificates are a new product, which is certain to attract the interest of investors and offers leveraged investment in commodities.

Factor certificates (23 new series)

Factor certificates, which are certificates with a fixed pre-defined leverage, are financial instruments for active investors newly introduced to the Polish market. With factor certificates, exchange investors may gain from changes in the prices of the most popular futures contracts on commodities including gold, silver, oil, as well as indices EURO STOXX50 and WIG20. In addition to the new underlying, the new products also allow investors to set a fixed leverage and offer transparent and simple transaction clearing rules. Factor certificates can be used to gain from rising prices of the underlying (long factor) as well as falling prices (short factor).
For more information about factor certificates visit: http://www.gpw.pl/factor_certificates.

Turbo (knock-out) certificates (105 new series)

Turbo certificates use the variable leverage mechanism and offer gains on rising or falling prices of the underlying at a low level of invested capital. The underlying of turbo certificates are commodities such as gold, silver, oil and others. Each instrument will consist of counterparts in the form of long and short leverage certificates. So far, the WSE has listed 31 series of knock-out certificates, which were also issued by Raiffeisen Centrobank AG.
For more information about turbo certificates visit: http://www.gpw.pl/knock_out_certificates.

Discount certificates (20 new series)

Discount certificates are purchased at a price discount. This means that investment in a discount certificate is less expensive than investment in the corresponding underlying, which creates a safety margin equivalent to the difference between the price of the underlying and the price of the corresponding certificate. The structure of discount certificates is perfect for markets in a lateral trend as well as modestly rising or modestly falling markets. The underlying of the offered certificates are prices of stocks listed on the WSE and the WIG20 index.

Bonus certificates (20 new series)

The mechanism of bonus certificates offers additional gains as long as the price of the underlying is above the price barrier. Once the price drops below the barrier, the performance of bonus certificates tracks the performance of the underlying on a 1:1 basis. The price of bonus certificates at issue equals the price of the underlying. The underlying of the offered certificates are prices of stocks and the WIG20 index.

Warrants (66 new series)

Warrants are financial instruments whose price depends on the price or value of the underlying. The underlying include stocks, bonds, indices, interest rates, fx rates, etc. Warrants are cash market instruments with features of derivatives. Warrants are similar to options but, unlike options, warrants have an issuer. Warrants offer gains on rising and falling prices of the underlying with a leverage mechanism.
Put and call warrants are issued by banks and other financial institutions like brokerage houses on the stock of listed companies, indices, etc.
For more information on warrants visit http://www.gpw.pl/warrants_en.

Short tracker of the DAX index (1)

The WSE will once again offer a short tracker of the DAX index: a financial instrument which offers gains where the DAX falls in the 1:1 proportion (no leverage).
For more information on trackers visit: http://www.gpw.pl/produkty_strukturyzowane_1_en.

When investing in structured products on the WSE, investors receive complete product and issuer information. Such information is contained in the prospectus approved by the Polish Financial Supervision Authority as well as the Final Terms of each product. The documents also describe the risks and the mechanism of payment offered by the instrument on maturity. As such financial instruments are listed on the exchange, investors can always buy and sell instruments on the secondary market; as a result, investors can invest or exit an investment at any time before maturity. Liquidity of the market is supported by a market maker who maintains buy and sell offers in the order book throughout the trading day.

The WSE has consistently and regularly expanded its product offer by adding new financial instruments addressed to investors of different risk appetites. Access to a broad range of products, both traditional and innovative, allows investors to diversify their portfolios, especially at the time of less favourable conditions on the financial markets.

For more information on structured products visit: http://www.gpw.pl/produkty_strukturyzowane_1_en.