Manage your risks and assets

Derivatives

Equity derivative solutions

As a stock listed corporate or corporate with stock listed participation, you are exposed to fluctuations in equity markets that can have a big impact on your balance sheet. Our specialists can help you with customised solutions that fit your underlying equity exposures, risk profiles and views.

Treasury shares management

Your challenge:
Supporting the share price by purchasing the shares on the cash equity market or protecting shareholders from a potential dilution (convertible bond, stock option plan exercise, etc.) by purchasing shares on the cash equity market may be cash intensive and leave a substantial share price risk on your balance sheet, adding unwanted leverage.

Our solutions:

  • Derivative solutions that allow your company to have the economic exposure on its share, without having to finance it
  • Alternative derivative solutions to match the exact exposure and replicate the exact dilution exposure
  • Alternative buyback programmes that allow you to purchase treasury shares at a discount to the current market price

Stock option plan hedging

Your challenge:
You may issue stock-based incentives as part of your executive compensation plans. As the options’ and the shares’ sensitivity to a price move are not the same (you run a share price risk on the options and the hedge) and as the whole notional has to be funded for hedging via treasury share funding, you may want to use equity derivatives as an alternative to hedge those stock option plans.

Our solutions:

  • We exactly replicate the share based plans (purchase of replicating call options), allowing clients to free up cash and match the price risk
  • We actively manage your options delta hedge, either by cash equity or by variable notional total return swaps, helping you to execute your delta hedging

Management of listed participations

Your challenge:
Your company may have stakes in one or more listed companies.

Our solutions:

  • Derivative solutions that allow you to exit a participation at a premium to the current market price, or to build up a stake at a discount to the current market price
  • Derivative solutions that allow you to keep an economic and legal exposure to the participation, without running a full price risk on the participation, or retain an economic and legal exposure to the participation while freeing up cash without raising debt
  • Derivative solutions to increase the return on a participation in a suspected flat market and depending on your views on the share price evolution

Global Equity