CIMB launches call warrants

Published: 2009/05/27

CIMB Bank and CIMB Investment Bank today launched call warrants on IOI Corporation Bhd, IJM Corporation Bhd, Toyota Motor Corporation and China Construction Bank Corporation. This latest launch bypasses the previous placement route, reducing the time-to-market from nine market days to one market day, CIMB group said in a statement.

“The Malaysian capital markets are now in line with the international practice of call warrants launches. Without having to subscribe for the call warrants via the placement route, investors can trade the call warrants on the listing day which is one market day after the launch date,” said Head of Equity Derivatives Group, CIMB Group, Lim Jong Hau. He also commended Bursa Malaysia for introducing the Market Making Framework, saying it clearly defined the roles and obligations of a Market Maker.

Following Bursa Malaysia’s introduction of its Market Making Framework for Exchange Traded Funds and Structured Warrants, CIMB Bank and CIMB Investment Bank have received the approval of Bursa Malaysia to be registered as the Market Makers for its call warrants. CIMB Bank Bhd and CIMB Investment Bank Bhd are the first two organisations in Malaysia to be registered as Market Makers under the new framework. - Bernama