Reuters wins HKEx derivatives data deal

Source: Reuters

Reuters, the global information company, today announced it has been appointed by Hong Kong Exchanges and Clearing Limited (HKEx) to provide the end of day data on implied volatility and delta for listed equities Derivative Warrants (DW).

Collectively this new information from Reuters will enable DW investors to learn more about the various factors affecting DW prices. It will be available on HKEx's new web-based Derivative Warrant Resource Centre (DWRC) that offers investors easy access to Derivative Warrants data and information for educational and reference purposes.

Hong Kong hosts the world's largest markets for warrants -- a kind of option usually traded on an exchange that gives the holder the right but not the obligation to buy or sell an underlying asset, such as a stock. They can allow investors to hedge underlying positions. Although warrants in Hong Kong often come with a relatively higher degree of risk, they do help by contributing commissions and revenue to brokerage houses as well as the exchange itself, and allow more investors to become actively involved in the markets.

Alex Hungate, Managing Director in Reuters Asia said: "We are pleased to partner with the HKEx on this initiative to bring greater transparency to the important Hong Kong equity derivatives and warrants market. Reuters has the unique combination of advanced pricing models and accurate company database that allows it to provide reliable and timely end of day volatilities and deltas."

Stephen Wilson, Reuters Global Head of Exchange Traded Instrument said: "We are fully committed to working closely with exchanges to distribute their content and to help generate liquidity. This announcement further illustrates our efforts in this market space. HKEx is one of the leading equities derivatives markets globally and we are excited to be extending our working relationship with the HKEx."

Hong Kong is one of the most important equities derivatives markets in the world, with turnover of 67,357 USD (million) and 110,214 USD (million) for 2004 and 2005 respectively.

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