Warrants
Definition
Warrants vest the owner of the warrant with the right to purchase currency amounts (
Currency warrants)
, bonds (
Bond warrants),
or stocks (
Equity warrants
) at predetermined conditions within a certain period (or on a certain key date).
A special type of warrant is the Index Warrant, which speculates on rising or sinking prices and is only aimed at cash settlement and not the delivery of securities.
Warrants can be traded on their own or can be purchased together with a bond (warrant bond).
Integration
To enter data for warrants, the following product categories are available:
Product Category
Name
111
Index warrant
112
Equity warrant
113
Currency warrant
114
Bond warrant
Note
To create the respective product types, in Customizing for the
Transaction Manager
choose
Securities
Master Data
Product Types
Define Product Types.
You create warrants as a
class
in the system. They can be purchased and sold using the transaction management functions.When exercising security rights, warrants are separated from warrant bonds. The system enters the exercised or expired warrants.
See also: