UBS picks up SG warrants book

By Craig Phillips

UBS’s securities arm has struck a deal with SG Australia to administer the latter’s existing instalment warrant book of business, as SG seeks to significantly scale down its presence in the domestic market.

The deal allows UBS Securities Australia to offer its own products to SG customers upon the expiry of their existing SG contracts — the longest of which are scheduled to mature in November.

“From an investor’s perspective they [SG customers] will be dealing with UBS as if they were dealing with SG. This will continue until their positions mature, at which point we will offer them UBS products,” UBS Securities Australasian equities products head Steuart Roe says.

Last month, SG announced plans to wind down its Australian operations and relocate its derivatives and warrants business to Hong Kong.

SG Australia head of listed products Jason Lapping says while the group will not issue any new warrants domestically in the medium-term, it remains open to having a presence in Australia.

“[However] it was going to be tricky trying to maintain the level of customer service from offshore, which is why we have reached an agreement with UBS,” he says.

The arrangement for UBS follows a similar agreement by it to administerBNP Paribas’ instalment warrant business last year.