Deutsche Bank will have a total of 142 warrants and 24 discount certificates trading on the exchange with the new additions, Albert Krespin, chief executive officer of the lender’s Istanbul-based brokerage unit, said by e-mail today. Some of the discount certificates will be based on the shares of Turkiye Vakiflar Bankasi TAO (VAKBN), Turkey’s third-largest state lender, he said.
A warrant is a tradable certificate representing an option to buy shares at a specific price before a predetermined date. Discount certificates enable the investor to acquire an underlying instrument at a discount to the direct investment.
Warrants started trading on the Turkish exchange in 2010, and their volume rose to 3 billion liras ($1.7 billion) last year from 2.8 billion liras in 2011, according to data on the exchange website.
Total warrants issued amounted to 40 million liras at end- October 2012, according to the Capital Markets Board. Currently only Deutsche Securities and Is Invest, Turkey’s largest brokerage by trading volume, issue warrants on the exchange. Erste Group Bank AG started issuing turbo certificates last year.
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