Macquarie Securities (Thailand) Limited has launched call and put derivatives warrants (“DW”) over the Dow Jones Industrial Average Index (“DJI”) and the NASDAQ-100 Index (“NDX”), on the Stock Exchange of Thailand (“SET”). The DW started trading on SET on Thursday, 17th March 2022.
The new DWs over the DJI and NDX join the existing DWs over the S&P 500 Index (SPX), meaning that there are now DWs over three U.S. indices issued by Macquarie available on SET. The DJI is a price-weighted measure of 30 U.S. blue-chip companies, and covers all industries except transportation and utilities, while the NDX includes 100 of the largest U.S. and international non-financial companies listed on the NASDAQ Stock Market, and reflects companies across major industry groups including computer hardware and software, telecommunications, retail/wholesale trade and biotechnology.
Macquarie is the first issuer of foreign index and stock DWs in Thailand. Macquarie continues to expand its DW coverage in Thailand with new product choices. In 2019 and 2020, Macquarie launched the first DWs over the Hang Seng Index (“HSI”) and Hang Seng TECH Index (“HSTECH”), allowing investors to gain exposure to the largest companies and technology companies listed in Hong Kong. In December last year, Macquarie launched first calls and puts over selected Hong Kong listed shares as well, allowing investors to gain leveraged exposure to the moves in the shares of specific Hong Kong listed companies.
“We have seen an increase in investors’ interest in DWs over foreign shares and indices in the last 12 months. As DWs over a variety of underlyings are now available on SET, investors can gain exposure to the local and foreign markets via their existing trading accounts, allowing them to have a better overview of their overall portfolios. We will continue to expand the product choices for DW investors in Thailand,” said Dean Herbert, Head of Listed Product Distribution, Asia, Macquarie Commodities and Global Markets.
“The listing of DJI and NDX DWs allows Macquarie to offer DWs over the major US indices, Hong Kong indices and shares. Macquarie is the biggest issuer by number of foreign underlyings in Thailand. Thai investors are attracted by the ability to access foreign indices. We anticipate that DJI and NDX DWs issued by Macquarie will draw interest from Thai investors,” added Noppadon Duangthipnest, Head of Derivative Products, Thailand, Macquarie Commodities and Global Markets.
With the issuance of both call and put DWs, investors with either bullish or bearish views can gain exposure to the U.S. markets. A call DW moves in line with the underlying, increasing in value as the underlying increases, while a put DW moves in an opposite direction to the underlying, increasing in value as the underlying decreases, and vice versa. The put DWs also allow investors to hedge their U.S. portfolio against any downside risk in the market. In addition, with DWs being a leveraged product, investors can gain exposure with a smaller capital outlay, and yet will not be subject to any margin calls.
Adding to their suite of DWs over foreign indices such as the SPX, the Hang Seng Index, the
HSTECH and, the DJI and NDX DWs will track the movement in the relevant futures contracts which trade 23 hours a day, covering the full trading hours of SET. The market making hours of these new DWs will be the same as Macquarie’s market making hours for the existing SPX DWs, i.e. from 10:00AM to 4:30PM with no lunch break . Investors can trade DWs with their existing trading accounts maintained with their brokers, similar to how they trade shares.