Macquarie improves price transparency in Singapore warrant market

Warrant trading is now easier, with the introduction of a new tool – the Live Matrix – the first of its kind in Singapore!

Macquarie recently launched the Live Matrix on their website www.warrants.com.sg. The Live Matrix has a direct feed from Macquarie’s market making system, and allows investors to see where the market maker’s bid and offer prices will be at various price levels in the underlying stock or index in real time.

Macquarie is a leading warrant issuer in Asia, with a presence in four warrant markets across the region. Macquarie commands a top tier market position in the markets of Hong Kong, Thailand, Malaysia and Singapore. They attribute much of their success to a strong reputation for providing high quality and transparent market making. The Live Matrix is the latest evolution of the market.

“The Live Matrix will improve transparency in warrant trading in Singapore like never before. Now, warrant investors can simply click into the warrant on our website, and there will be a table to show them where our quotes are, given the corresponding prices in the underlying at that point in time.

With this information, the investor will be able to determine whether the market maker is providing a tight spread in a particular warrant, making trading decisions easier.” said Barnaby Matthews, Head of Equity Derivatives Products for Macquarie in Asia.

“We have launched the Live Matrix in both Thailand and Malaysia where we believe it had a positive effect in those markets, due to the increased transparency and ease of use. It is by far one of the most visited pages on our website in each of those respective warrant markets. Investors use the tool on a daily basis as a trading guide. We believe it will quickly become very popular with Singapore warrant investors.” added Mr Matthews.

Luuk Strijers, Head of Products, Equities & Fixed Income of SGX said, “Asian investors have shown a strong appetite for leveraged products in recent years, as reflected in the activity in Singapore’s structured warrants market. SGX welcomes this new feature launched by Macquarie to increase the level of transparency of market maker pricing for Singapore investors trading structured warrants.”

As part of the Live Matrix launch, Macquarie is giving away two of the latest Microsoft Surface Pro laptops. To win, participants simply visit www.warrants.com.sg to answer questions related to the Live Matrix from 10 January to 8 February 2018.

The Live Matrix is one of the many new features Macquarie is introducing as part of their new Singapore website launch. Other new features include animated warrant videos to help investors understand the basics of warrants in a quick and fun way, and a newly revamped newsletter keeping investors up to date with the latest market buzz every morning.

The Singapore warrant market has seen a large jump in traded value over the past year, with daily turnover increasing 90% from 2016 to average S$58.4 million per day in 2017.

For more information on the Live Matrix and the contest, please refer to www.warrants.com.sg.

The information provided herein is produced by Macquarie Capital Securities (Singapore) Pte. Limited (“MCSSPL”), holder of a capital markets services licence under the Securities and Futures Act, Chapter 289 of Singapore. The information is directed and available for general circulation to residents of Singapore only. Any material provided, including any indicative terms are provided for information purposes only and do not constitute an offer, a solicitation of an offer, or any advice or recommendation to conclude any transaction. Macquarie Bank Limited (ABN 46 008 583 542) (“MBL”) is the Issuer of the Macquarie Warrants (“Warrants”). References to Macquarie include MBL and MCSSPL. Any other parties distributing this product are only doing so as a distributor for MBL. MCSSPL will provide administrative services to MBL. MBL is regulated as an authorised deposit taking institution by the Australian Prudential Regulation Authority. MBL, acting through its Singapore branch is authorised and licensed by the Monetary Authority of Singapore to carry on wholesale banking business in Singapore pursuant to the Banking Act, Chapter 19 of Singapore and therefore is subject to the supervision of the Monetary Authority of Singapore.

Warrants can be volatile instruments and may be subject to considerable fluctuations in value. The price of Warrants may fall in value as rapidly as it may rise due to, including but not limited to, variations in the frequency and magnitude of the changes in the price of the underlying share or index, dividends and interest rate, the time remaining to expiry and the creditworthiness of MBL. Therefore Warrants run the risk of expiring worthless resulting in a total loss of your investment.

Where past performance is referred to, it is not indicative of future performance. In preparing the information contained herein, Macquarie did not take into account the investment objectives, financial situation and particular needs of the reader. Before making an investment decision on the basis of the information contained herein, you should consult, to the extent necessary, your own independent, competent, legal, financial and other professional advisers, to ensure that any decision you make is suitable for you with regard to your investment needs, objectives and financial circumstances.

MBL makes no representation nor can it give any assurance as to the liquidity in the trading of Warrants as MCSSPL, the Designated Market Maker, may be the only person quoting prices in the Warrants. In deciding whether to acquire or continue to hold an investment, you should obtain the base listing document and the relevant supplemental listing document from us and consider its content carefully before making any decision about this financial product. Copies of the listing documents may be obtained from the office of MCSSPL at 10 Marina Boulevard #17-01 Marina Bay Financial Centre Tower 2 and on www.warrants.com.sg.