Payment After Knock-Out - PAKO

Payment After Knock-Out, also known as PAKO, is a feature only available for Warrants & Certificates listed and traded on Euronext and applies to Leverage Knock-Out products which may pay a residual value if they are knocked-out.

Cash settlement of the redemption value on a delisted Leverage Knock-Out product has been based on manual payment instructions between several parties and could take up to three weeks to transit between the product issuer and the end investor.

Thanks to the launch of Payment After Knock-Out  by Euronext at the end of 2014, redemption value payment can take place minutes after a knock-out using on-exchange straight-through-processing, benefiting all market participants and facilitating investment rotation.