Warrants set to launch

Professional Adviser
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covered warrants market will open on 14 October following their exemption from stamp duty

The UK covered warrants market is to launch on 14 October following the Inland Revenue's ruling that they will be exempt from stamp duty. Covered warrants are secruitised derivatives that offer the investor the right, but not the obligation, to buy or sell an underlying asset at a set price within a specified period. The warrants will be available on a broad range of blue-chip companies, sector baskets and both UK and overseas indices. Holders can buy calls and puts, enabling them to use the warrants as a way of hedging bets. Unlike tracker funds and ETFs, covered warrants do not char...

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