The Exchange has amended Chapter 15A, part D of Appendix 1, part H of Appendix 7 and Appendix 8 to the Listing Rules and has repealed Appendix 6A and Practice Note 14 to the Listing Rules. These previously dealt solely with the listing of derivative warrants on the Exchange. The scope of these chapters and appendices has been widened to deal with the listing of structured products.
Characteristics of the structured products that may be listed on the Exchange include:
-
The underlying asset may be a security, currency, commodity or other asset or combination of assets.
-
They may allow investors to purchase or sell the underlying asset at a predetermined price; or to receive a cash payment (or payments) calculated by reference to the price or value of the underlying asset.
-
The cash payment above may be determined by reference to the value of the underlying asset at a point in time or various points in time.
-
They may require investors to make one or more payments during the life of the product to acquire the underlying asset.
-
They may provide for investors to receive dividends or other distributions on the underlying asset during the product life.
-
They may be European style, American style or other style permitted by the Exchange.
-
They may be collateralised or non-collateralised.
-
They may or may not be capital protected.
The types of structured product that may be listed on the Exchange include derivative warrants and Equity Linked Instruments ("ELI"). A number of specific provisions have been included for ELI:
Other changes introduced include: