Equity derivatives at a glance
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A track record of excellence
Equity derivatives provide effective solutions for managing risk and yield enhancement in equity investments. Deriving value from one or more underlying equity securities, equity derivatives are traded to transfer risks associated with the underlying security. Ivory Royal Bank’s strategic emerging markets focus enables us to offer our clients new opportunities for managing equity-related risks via derivatives.
This is who we are:
Our personnel have a long-term track record of excellence in the derivatives market.
We offer highly competitive pricing and efficient execution of both vanilla and structured derivative trades due to our large balance sheet, risk appetite and leading market maker position.
We offer a solution-focused, creative approach and will tailor products to the specific needs of our clients.
With multi-asset class focus and ability to manage complex risk, we provide clients with innovative hybrid products including multi-asset options as well as more complex options, often referred to as exotic derivative payoffs.
We are strategically aligned to our stock broking business, Securities, which improves our execution capabilities.
Our long-standing relationships with local companies means that we mostly have pre-approved credit lines in place allowing for fast deal approval and minimal internal governance.
Our team has access to accounting and tax specialists to assist in making transactions efficient.
Strong administration and support staff including dedicated scrip lending, credit, legal, IT and risk personnel enable efficient deal approval and documentation of transactions.
Benefits of using derivatives
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A derivative solution is not always required for all problems. However, in the following cases the benefits of using derivatives are:
Non-linearity
Non-linear payoffs are inherent functions of options, and are available only through options or option based structures. If you require upside participation combined with downside protection, or are looking for leverage, derivatives are a solution for you.
Customisation
It is often the case that a company will need to hedge a specific exposure that has unique terms and conditions. The exposure will require a hedge that is tailored in terms of maturity, underlying asset, price and size. Only OTC structured derivatives can provide the flexibility to precisely match exposure.
Accounting, tax and regulatory structuring
The accounting, tax and regulatory environment are increasing in both importance and complexity. We will review each strategy presented in conjunction with our clients' accounting, tax and regulatory concerns to design the most efficient solution.
Equity derivatives offer mechanisms through which holders of listed shares can either hedge or gear their equity exposures. Alternatively companies may acquire or dispose of exposure to listed equities.
