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To continue setting the industry standard and to cement its leading position in the derivatives market in Taiwan, Yuanta continues to seek innovation in design of products such as warrants, Asset Securitization, Interest Rate Swaps (IRS), Structured Products, and CBAS.
Yuanta was the first to issue Straddle warrants and warrants with execution ratios of 0.1 in 2003, providing arbitrage opportunities for investors; and bringing warrant issuance in Taiwan into the new millennium. Thanks to its ceaseless efforts, Yuanta has a 28% market share of the total number of warrants issued, and a 32% market share in the total value of warrants issued, leading its competitors by a significant margin. |
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Of the 7 asset securitization cases in the market between 2003 and the first quarter of 2004, Yuanta lead managed 2 cases and co-lead 2 cases worth a total of NT$3 billion. In Interest Rate Swap trading (IRS), Yuanta ranked first for the second consecutive year with total trading volume at NT$26 billion and a market share of more than 23% in 2003.
OTC is planning to relax restrictions governing structured products in 2004, and therefore most of Yuanta's emphasis will be on designing structured products to meet the diverse needs of clients. Yuanta was one of the first to obtain a license for CBAS and CBO when they first became liberalized in June 2000 and June 2001, and worked in conjunction with First Commercial Bank to complete the first deal in the market, leading its peers. By the end of 2003, CBAS had a 50% market share at the bond side and a market share of 35% at the options side. As the markets for CBAS and CBO are gradually maturing, Yuanta will start to focus on incorporating structured products into CBAS to increase market demand, diversifying its business nature to create greater comparative advantage.
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