The Spanish Exchange yesterday began to trade the first ‘turbo’ warrants, which have been issued by BNP Paribas Arbitrage Issuance (BNP Paribas). The issue consists of 8 Turbo Call and 8 Turbo Put warrants on the IBEX 35.
The exchange says ‘turbo’ warrants offer the possibility of bringing forward the expiry date with respect to that set in the terms of the issue. This facility is linked to the setting of a barrier, whereby if the price of the underlying asset hits or exceeds this barrier the expiry date for the Turbo Warrant is brought forward.
Turbo Warrants are traded on the Spanish electronic trading system Sistema de Interconexiao Bursa Espanol (SIBE) on the Warrant, Certificates and Other Products market segment, under the heading ‘Other Products’.