In October 2002, the Financial Services Authority (FSA) launched the UK market in listed securitised derivatives. These are available to private investors as retail securitised derivatives and professional investors as specialist securitised derivatives.
Securitised derivatives encompass three broad types of product: covered warrants, certificates and structured products. Covered warrants are securities that have similar economics to options in that they confer on the holder the right to buy or sell a certain underlying asset at a particular price within a specified timeframe. Certificates are securities, but unlike warrants they have no leverage; in other words, their price tracks the performance of the underlying assets directly.
