Warrants & Certificates
Warrants & Certificates
Why trade Warrants & Certificates on Euronext
Unique market model
Our Warrants & Certificates market model combines the benefits of Central Order Book trading and Request For Quote (RFQ).
- You can leave Limit and Stop Orders in the order book.
- Requests For Execution (RFE) are sent to liquidity providers. LPs can update trading thresholds and quotes if need be, ensuring executions at most up-to-date prices.
- Access a unique type of stop order for Warrants & Certificates: the Stop-On-Quote order. The activation is based on the liquidity provider's quotes rather than last traded price.
- Investors can trade Warrants & Certificates between 08:00 CET and 18:30 CET.
- Some products can benefit from specific features such as:
- Knock-In By Issuer (KIBI) to replicate intraday listing
- Knock-Out By Issuer (KOBI) to suspend trading in real time following a knock-out event
- Payment After Knock-Out (PAKO) to facilitate intraday residual value payment.
Investor protection
- For investor protection, you will not be able to trade outside of the liquidity provider's bid-offer spread
- At worst, investors will trade against the liquidity provider. At best, investors will trade against each other. Such trade will happen inside the liquidity provider's bid-offer spread, improving execution price.
- To prevent trading at aberrant prices, order books are suspended if the liquidity provider is absent.
Market quality and efficiency
- To ensure investors can trade at all times, the issuer must appoint a liquidity provider for each Warrant or Certificate.
- Liquidity providers sign an agreement with Euronext, binding them to performance obligations:
- Minimum presence time
- Maximum bid-offer spread
- Minimum bid and offer quantities
- To improve efficiency and transparency, Euronext makes liquidity provider performance publicly available.
- Trading takes place in a Single Order Book in Amsterdam, Brussels and Paris, ensuring excellent market quality.
- Trading against other investors inside the liquidity provider's bid-offer spread can also result in execution price improvement.
- All trading activity is monitored in real time by Euronext Market Surveillance.
