Warrants Issuers Battle Algo Predators in Hong Kong

The threat of high-frequency traders have forced banks to spend big on tech.

It can take years and considerable sums of money to build a warrants business in Hong Kong. The investment can begin to unravel in a mere one-millionth of a second.

The derivative warrants market in Hong Kong, with its paper-thin spreads and zero stamp duty, has long been a target for high-frequency trading firms on the hunt for fleeting differences between the price of the structured product and its underlying stock. If an issuer’s technology is not up to scratch in this market, the lost basis

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