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Derivative Warrants

HKEX and/or its subsidiaries endeavour to ensure the accuracy and reliability of the information provided, but do not guarantee its accuracy and reliability and accept no liability (whether in tort or contract or otherwise) for any loss or damage arising from any inaccuracy or omission or from any decision, action or non-action based on or in reliance upon information contained in this website. Where the information is supplied by a third party, it is displayed on an "as is" basis. HKEX and/or its subsidiaries do not warrant and make no representation as to the accuracy, reliability, updatedness and completeness of the information and accepted no liability (whether in tort or contract or otherwise) for any claim, loss or damage arising directly or indirectly from any inaccuracies or omissions, or the use of or reliance on any information or otherwise howsoever.

Derivative warrants are an instrument that gives an investor the right to "buy" or "sell" an underlying asset at a pre-set price prior to a specified expiry date. They may be bought and sold prior to their expiry in the market provided by HKEX. At expiry settlement is made in cash rather than a purchase or sale of the underlying asset. Derivative warrants can be issued over a range of assets, including stocks, stock indices, currencies, commodities, or a basket of securities. They are issued by a third party, usually an investment bank, independent of the issuer of the underlying assets. Derivative warrants traded in Hong Kong normally have an initial life of six months to two years and when trading in the market each derivative warrant is likely to have a unique expiry date.

Naming Conventions of Stock Short Name For Derivative Warrants

Note: The following naming conventions are applicable in most cases but are not exclusive for all circumstances.

ZZQQQQQ@ECYYMMA

Or

ZZ-QQQQ@ECYYMMA

Or (traded in Renminbi)

ZZQQQQ@ECYYMMA*

ZZ - Issuer's short name

Q - Up to 5 characters representing name of the underlying asset

@ - @ = Cash settlement ; * = Physical delivery

E - E =European ; R = Regional warrants ; X = Exotic (non-traditional) ; No Character = American 

C - C = Call ; P = Put ; No Character = non Call or Put 

YYMM - Expiry year and month

A - Serial number for additional issues by the same issuer on same underlying asset with same expiry year and month (A, B, C ...)

* - Indicator for DWs traded in Renminbi (RMB)


Note:

The above naming convention for DWs comes into effect on 27 Feb 2012.  The stock short name of DWs launched before 27 Feb 2012 will remain unchanged.  There is no serial number assigned to the first issue of DWs launched before 27 Feb 2012 (i.e. ZZ-QQQQQ@ECYYMM).

Stock Code Allocation Plan For DERIVATIVE WARRANTS

Stock Codes To be allocated for new listing of
Ranges Sub-ranges
10000-29999 Derivative Warrants (DWs)
10000-10999 DW with underlying assets listed outside Hong Kong, basket warrants and exotic warrants
80000-89999 Products traded in Renminbi
89000-89999 Derivative Warrants (DWs)

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