Macquarie Capital Securities, with 95 structured warrants, worth an estimated M$282m (US$69.6m), was the most active distributor in Malaysia during the second quarter of 2018. The Australian company, which has been an active distributor of warrants in the country since January 2017, according to SRP data, launched warrants linked to 55 different underlyings of which the Hang Seng Index, used in 12 products - both callable and puttable - was the most popular.

June was a pivotal point for Macquarie, marking the issuance of its 1000th structured warrant in Malaysia. The bank continues to command a leading market share, with 60.1% of local warrant turnover. The enquiries the bank receives these days from investors indicate that they are improving their understanding and becoming more knowledgeable towards warrant pricing, according to Barnaby Matthews (pictured), head of equity derivatives products for Macquarie in Asia. Macquarie's live matrix tool is the first of its kind in Malaysia, allowing investors to see exactly where the bank's warrant bid and offer prices will be "throughout the trading day", said Matthews.

RHB Bank was the most prolific provider by sales volume. The bank collected M$1.5 billion from 70 products, which included 43 warrants and 27 deposits. The latter were predominately using the callable, range accrual, and dual currency payoff structures linked to either foreign exchange or interest rates. Year-to-date, RHB has increased its market share by 50%, compared to the same period in 2017.

Kenanga Investment Bank and CIMB Bank were also active, issuing 60 and 30 products, respectively. Again, these were mostly warrants, although CIMB did include three equity-linked investments in its offering, each of which were reverse convertibles linked to gold.

FX rates were the most used as underlying, featuring in 36 products, followed by the local FTSE Bursa Malaysia Index (18 products) while Air Asia and Inari Amerton (seven each) were popular shares.

Two-hundred and fifty-eight structured products, predominately warrants and dual currency deposits, struck between April 1 and June 30, 2018 in Malaysia.

Another 274 products matured throughout this period, releasing M$3.8m back onto the market.

The full Malaysian market review for the second quarter of 2018 will be available shortly.

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