WSE expands the range of structured products: Knock-out certificates available for investors from 15 December

WSE expands the range of structured products: Knock-out certificates available for investors from 15 December

14/12/2011

• 15 December 2011 is the first day of trading in knock-out (turbo) certificates on the WSE
• 31 series of leverage certificates based on the prices of 10 instruments listed on the WSE will be introduced to trading.

On 15 December 2011, the Warsaw Stock Exchange introduces to trading on the Polish market an innovative type of financial instruments: leverage knock-out (barrier) certificates. The certificates are issued by Raiffeisen Centrobank AG. Trade name: TURBO Certificate.

The knock-out certificates listed on the WSE will be based on the prices of the following instruments:
• WIG20
• PEKAO
• KGHM
• PGE
• PGNIG
• PKN Orlen
• PKO BP
• PZU
• Tauron PE
• TPSA

These instruments use financial leverage and offer the opportunity to make a profit on an increase or decrease of stock prices of selected companies or indices at a low capital investment. Each of the above instruments will have its counterparts in the form of long and short leverage certificates. The leverage ratio of the 31 series to be introduced to trading on the WSE ranges from ca. 2.5 to ca. 10.

Thanks to embedded financial leverage, leverage knock-out certificates are products addressed to active investors who expect to make significant profits in a short term and can manage the large volatility of prices of these instruments.

The addition of new financial instruments to the WSE’s offering is a continuation of the Warsaw Stock Exchange’s consistent strategy aiming to give investors access to a broad range of products, both traditional and innovative, with a very complex structure enabling risk diversification also at the time of a market downturn.