MBS is one of the first entities to issue and create a market for warrants. This includes:
Issuance and Listing:
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Selecting the underlying assets for issuing warrants.
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Defining the terms of the warrants.
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Submitting the issuance application to the State Securities Commission (SSC), and distributing the warrants to investors.
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Submitting registration documents to the Vietnam Securities Depository (VSD) and the listing application for the warrants on the HOSE.
Market Making:
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Determining a reasonable price for the warrants and listing buy/sell prices around this value on the HOSE.
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Ensuring liquidity for warrants on the market.
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Narrowing the bid/ask spread, thereby reducing costs for investors.
Risk Hedging:
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Risk hedging is carried out alongside market making activities to hedge the risk for the warrant portfolio.
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Ensuring that investors’ interests always align with MBS’s interests.
Other Roles:
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Paying the difference to investors when the warrant matures or is delisted before maturity.
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Being responsible for all obligations related to the warrants issued by MBS.
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When issuing warrants, MBS deposits 50% of the issuance value with the depository bank to ensure payment capability for investors.