Warrants provide investors an alternative way to invest in a variety of tradable assets and the opportunity to access higher growth while reducing exposure to any one particular asset or risk. They derive their value from an underlying asset such as a security, an index, a commodity, a currency or an interest rate. Certain warrants investors with the option to buy or sell the underlying assets at a predetermined price. Alternatively, other warrants offer cash payments that reflect of the underlying asset at a particular time.
Warrants can provide diversification to a portfolio or offer the potential to leverage market shifts. There are varying styles of warrants and ways in which they can be used, depending on investors risk appetite, personal circumstances and investment objectives.
As of 31 December 2023, Cboe Australia offers over 1,100 uniquely quoted warrants, covering equities from Australia's largest companies, indices, currencies, commodities and fixed income.
Warrants List
View the current list of warrants available on Cboe Australia.
Pricing
The price of the warrant will change as the price of the underlying fluctuates.
Resources
Read the explanatory booklet, Investing in Warrants, on what you need to know before investing.
A Focus on Quality Markets
There are 2 broad types of warrants. Trading style warrants have features that better lend themselves to shorter term trading. Investment style warrants are typically held for longer although they can also be traded actively.
Underlying Asset
All warrants have an underlying asset - it can be a security, a share price index or an instrument based on an index, a foreign exchange rate, a commodity or other asset.Trading Warrants
Trading warrants are typically cash settled and investment style warrants are typically deliverable which means you have the right to purchase/sell the underlying asset.Expiration Date
Some warrants have an expiry date which is the last day that a warrant can be exercised.Conversion Ratio
Warrants have a conversion ratio which tells you how many warrants you must hold if you want to buy/sell the underlying by exercising your warrants.Foreign Exchange Rate
Index warrants and warrants over commodities or foreign exchange rates have a contract multiplier which is used to calculate the value of the warrant. The multiplier may be denominated in a foreign currency.To learn more about the benefits, risks and style of warrants, download our explanatory booklet, Investing in Warrants.
Issuers of Warrants
Citigroup Global Markets Australia Pty Ltd
1300 30 70 70
citifirst.com.au
Registry: Computershare Australia
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Warrants - FAQ
- How can I find which warrants are available for trading on Cboe Australia?
Look in the Reference data section of our web site to see the list of warrants, or download the full list as a .CSV file.
- How are warrant codes structured?
All warrants have a unique 6 character code.
Example: BHPKCA.
The first three letters represent the underlying Asset. In this case BHP.
The fourth character identifies the type of warrant.
- I, J: Instalments and Instalments MINIs
- S: Self-funding Instalments
- K, Q, M: MINIs (as used in the example above)
- L: GSL MINIs
- T, U, V, W: Put and call trading warrants
- X, Y, Z: Others which include barrier and knockout warrants/turbo warrants
The fifth letter indicates the Issuer Code, C: CitiFirst warrants.
The sixth letter indicates Long or Short.
- A to O: Long/Call (as used in the example above)
- P to Z: Short/Put
The next available letter is normally used for position 6.
- Where can I find the PDS for a particular warrant?
Whenever a new warrant series is approved for trading on Cboe Australia an announcement is made to the market which attaches the PDS relevant to that warrant series. These are included in the Announcements section of our website. You can also follow the link beside each symbol in the Reference Data section.
Alternatively, the Issuer of the warrant series will have the relevant PDS on their website. You can find links to Issuer websites in our Issuer details section.
- Can I trade Cboe warrants through any broker?
You can trade Cboe quoted warrants through brokers that are Cboe Australia trading participants. The list of Cboe Australia trading participants is available in our Trading section which can be accessed from our home page.
- What is the difference between warrants traded on Cboe Australia and warrants traded on ASX?
Trading and settlement of warrants is very similar on both markets. Settlement will go through CHESS and the warrants are on the register used by the Issuer irrespective of which market the warrants are traded on.
The warrants being traded on each market are different. There might be the same type of warrants for example instalments, MINIs etc., some of the Issuers might be the same and the underlying instruments may be the same but the actual warrant series will be different.
Importantly, each series will have its own market – bids and offers and volume.
Cboe Australia anticipates that over time, there will be more and more warrants being quoted on its market.
- How do I know if a warrant is traded on Cboe Australia or on ASX?
Check the Symbol against the list in our Reference Data section to see if the warrant is quoted at Cboe Australia.
Some issuers have different 5th letter symbols on Cboe Australia. Citiwarrants (CTW) uses “C” as the 5th letter on Cboe Australia and “O” at ASX. Other issuers use the same letter on both exchanges.
- If I buy a warrant on ASX can I sell it on Cboe Australia and vice versa?
No, you can’t. Warrants quoted and traded by Cboe Australia are exclusively traded on Cboe Australia. The same applies to ASX quoted warrants. The simple rule is you have to sell on the market that you bought on.
- What must I do before I can trade warrants on Cboe Australia?
You will need to have signed a client agreement with your broker and been provided with the Cboe Australia explanatory booklet.
However if you have already been approved for trading ASX warrants, that approval applies to Cboe warrants. You do not need to sign another client agreement.
All retail clients need to be provided with a copy of the Cboe Australia Explanatory Booklet prior to trading. A wholesale client must be provided with a copy of the Cboe Australia Explanatory Booklet if it is requested.
- Where do I find a client agreement?
Each broker has its own client agreement. You should ask your broker for a copy.
- How do I find the key terms of a warrant?
The reference data section has some terms about each warrant, such as Expiry date, Strike price and type of warrant. This page has links to more detailed reference data, and to the PDS.
- What if I want to buy more warrants than are shown on the market?
The volume visible on screen is not necessarily reflective of the total volume available to buy and sell at a price. This is because Issuers act as, or contract the services of, market makers to provide liquidity.
The volume visible on screen is not necessarily reflective of the total volume available to buy and sell at a price. This is because Issuers act as, or contract the services of, market makers to provide liquidity. The arrangements between issuers and market makers require liquidity to be maintained so that investors can have confidence that, barring an extraordinary event, reasonable prices may be available for the purpose of liquidating existing positions.
If you want to trade in larger volumes, you should speak to your broker or contact the Issuer of the relevant warrant series.
- If I am trading for myself do I need to sign a client agreement?
Yes, you will still need to have signed a client agreement with your broker and been provided with the Cboe Australia explanatory booklet.
However if you have already been approved for trading ASX warrants, that approval applies to Cboe warrants. You do not need to sign another client agreement.
All retail clients need to be provided with a copy of the Cboe Australia Explanatory Booklet prior to trading. A wholesale client must be provided with a copy of the Cboe Australia Explanatory Booklet if it is requested.
- Does my advisor need to be accredited if advising me on warrants?
If you are receiving advice, on investing in warrants, by an adviser employed by a Cboe Australia Trading Participant, then your adviser must be accredited before they can advise you on Cboe Australia traded warrants.
Your adviser must, at a minimum, have accreditation as an Accredited Derivatives Adviser level 1 (also known as ADA1), in order to provide advice on subscribing for, buying, selling and exercising warrants. Advisers with a level 2 accreditation (ADA2) can additionally provide advice on all trading strategies relating to warrants.
For other advisers, different types of accreditation are available.
- Why can’t I see a Cboe Australia traded warrant on my market screen?
Not all brokers are Cboe Australia trading participants. The list of Cboe Australia trading participants can be found in the Trading section of our website which can be accessed form the homepage.
Cboe Australia trading participants are transitioning in their readiness to offer markets in Cboe warrants. You should ask your broker when they will be ready.
Warrants 101 - Educational Series
Learn about warrants with Elizabeth Tian from Citi in this informative video series.
Resources
Explanatory Booklet
The Investing in Warrants guide on what you need to know before investing.
Issuers of Warrants
CitiFirst investments in Australia cover a broad selection of quoted warrants, structured products and funds.
Warrant Issuer Announcements
Date | Time | Issuer | Announcement | PP | Links |
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