How do warrants differ from options?
Warrants and options are both a form of derivative instrument. They derive their value from an underlying instrument such as a share or an index. Key differences include: • warrant trades are settled on CHESS, whereas options trades are settled by the Australian Clearing House (ACH) • option terms are standardised and set by ASX, whereas the terms of warrant series are set by the issuer and vary from one warrant to another • warrants are issued by a third party (e.g.
