Barclays plans to publish the prices of its hedge fund-linked tradable options, inching towards making the prices at which these options are traded more accessible to market investors.
“The development of a transparent and standardized hedge fund-linked options market will empower a broader spectrum of investors to access the alternative investment universe,” said Antti Suhonen, head of fund-linked derivatives structuring at Barclays.
Based on the HFRX Global Hedge Fund Index, Barclays will offer a two-way market in European call options to its institutional clients and counterparties.
The options will be available in Euros, US dollars, pounds sterling, yen and Swiss francs with a minimum dealing threshold of 500 contracts or US$500,000. The maturities will start at five years, with additional maturities and strike prices dependent on market demand.
The option prices will be listed on Bloomberg and Reuters for the London market.