This website is issued in the UK by the London Branch of Société Générale. Société Générale is a French credit institution (bank) authorized by the Autorité de Contrôle Prudentiel (the French Prudential Control Authority). Société Générale is subject to limited regulation by the Financial Services Authority in the UK. Details of the extent of our regulation by the Financial Services Authority are available from us on request.
Although information contained herein is from sources believed to be reliable, Société Générale makes no representation or warranty regarding the accuracy of any information. Any reproduction, disclosure or dissemination of these materials is prohibited. This site is maintained by Société Générale, Exchange House, Primrose St, London EC2A 2HT.
Investment risks
The products described within this website are not suitable for everyone. Investors' capital is at risk. Investors should not deal in this product unless they understand its nature and the extent of their exposure to risk. The value of the product can go down as well as up and can be subject to volatility due to factors such as price changes in the underlying instrument and interest rates.
This disclaimer cannot disclose all the risks and other significant aspects of listed products. You should study the risk factors attaching to these products that are disclosed below and throughout this website.
In addition, we recommend that you consult an appropriately qualified financial advisor.
Risk disclosure requirements for private investors
1. Appropriateness Test:
Securitised derivatives are classified as complex financial products and therefore prior to trading these products with your Broker they will be required to assess whether you have necessary knowledge and experience in order to understand the risks involved in dealing in Warrants and other Derivatives.
http://fsahandbook.info/FSA/html/handbook/COBS/10
2. Suitability Test:
The purpose of the suitability test is to ensure that the products and services offered meet the client’s investment objectives. In addition it ensures that the client shall be able financially to bear, and have the necessary experience and knowledge to understand, the risks involved with the investment.
When providing personal recommendations in relation to Securitised Derivatives your advisor must have undertaken a suitability test and must only recommend products and services that are in accordance with the results of the suitability test.
http://fsahandbook.info/FSA/html/handbook/COBS/9
Counterparty risk
The products on this website are issued by Société Générale Acceptance or Société Générale Effekten, each a member of the SOCIETE GENERALE group of companies. Société Générale Effekten is only used to issue “Exchange Traded Notes” and Société Générale Acceptance for all other products.
Any failure of the relevant SOCIETE GENERALE group issuer to perform obligations when due may result in the loss of all or part of an investment.
Secondary market warning
SG Option Europe is the only market maker in SG Covered Warrants. Under normal conditions SG Option Europe will endeavour to provide a market-making service. Such arrangements may be temporarily or indefinitely curtailed as a result of technical problems within companies of the SG Group or the London Stock Exchange or data vendors or telecommunications carriers, or in the event of pending announcements by or difficulties in procuring information on underlying companies.
We are committed to ensure our warrant prices are always broadcast, however due to factors often out of our control e.g. technical issues with providers' feeds, there may be occasions whereby our Listed Products' prices are not broadcast. In such events, we will always endeavour to do whatever is in our power to resolve these issues promptly.
Secondary market risk is the risk that investors may not be able to open or close a Listed Products position at the desired price.
UK residents only
This site is intended for investors who intend to trade in listed warrants in the United Kingdom. It is not provided to any person who is a resident of any other country.
Investors should note that holdings in this product will not be covered by the provisions of the Financial Services Compensation Scheme, nor by any similar scheme in Germany for SGE products or in the Netherlands for SGA.In particular, the investments can be neither offered nor transferred in the United States.
No investment advice
Nothing in this website constitutes advice on the merits of buying, or selling a particular investment or exercising any right conferred by the warrants described. SG does not offer investment advice in respect of these products.
Accuracy and reliability of information
The information in this website is, to SG's knowledge, reliable and accurate but this cannot be guaranteed. The views of SG reflected in this website may change without notice. Figures included in this website take no account of personal tax liability.
The value of Listed Products may be exposed to fluctuations in rates of exchange, and these may have an adverse effect on the value or price of the Listed Product. The value of Listed Products can go down as well as up.
No investment decision should be taken without reading the Final Terms relating to the particular listed product concerned. A copy of the Final Terms may be obtained from Société Générale at Exchange House, Primrose St, London EC2A 2HT upon request.
Disclosure of interest
SG or its associates may from time to time have a position, or material interest in the warrants described in this website or the investments underlying them.
Generally SG will be the only market maker in the warrants discussed and will or may have provided significant advice in relation to the warrants and the investments underlying them.
Trademarks
Société Générale SA, who is member of LSE, will be the only market maker in the warrants mentioned. The name, logo and trademarks of SG and its affiliates ('SG') are reproduced by permission of SG. Where any warrant is based on an index, the index provider will have no liability to you in respect of its activities in respect of that index.
Covered Warrant risk factors
Leveraged returns are a major advantage of warrants but can also work against investors. Warrant investors should be aware that, if the underlying instrument to the warrant moves in the opposite direction to that anticipated by investors, the losses incurred by the warrant will be greater in percentage terms than those incurred by the underlying itself. The prices of warrants can therefore be volatile.
· Covered warrants have a limited life, as denoted by the expiry date of each issue. After this date, warrants can no longer be traded or exercised. Investors should note that warrants experience time decay (erosion of their time value) throughout their life. The rate of this decay accelerates as warrants near expiry and warrants may expire worthless. You should not buy a warrant unless you are prepared to lose all of the money you have invested plus any commission on transaction charges.
· It is important to note that while changes in the underlying price are generally the most important factor for warrants, other variables - such as market volatility, interest rates, exchange rates and dividends - may lead to a change in the price of a warrant even if the underlying itself is unchanged.
· It should also be noted that when the underlying price is unavailable - when the market on which the underlying is listed is closed, for example - a warrant price will move in line with an appropriate substitute, such as a future or option contract traded on a Related Exchange as specified in the relevant Pricing Supplement.
Covered Warrant Terminology
Type: C = Call, P = Put
Strike: The price at which the holder has the right to buy (call) or sell (put) the underlying share or index
Parity: The theoretical number of warrants needed to give the holder the right to one unit in the underlying
Elasticity/Effective Gearing is equal to the leverage multiplied by the delta. It represents the percentage change in the price of a warrant arising from a percentage change in the underlying.
Delta: The delta of the warrant is the theoretical amount by which the warrant price will change for a one unit change in the underlying.
Corporate actions notice
As a result of corporate actions such as rights issues, share splits, share buy backs and take over and mergers, the parity and strike levels of Listed Products may be adjusted to reflect such activity. The reason for this is to ensure that Listed Products investors are not disadvantaged or gain undue benefit by equity adjustments. When such a change takes place, if you require any further information please do not hesitate to contact us. Further information regarding the calculation of the changes can be supplied upon request.
Third party information
Any third-party advertising, information and referral buttons containing hyperlinks are not recommendations or endorsements by SG or its respective directors, affiliates or employees. The user is referred to the relevant third party for all relevant information, including complete information on that entity's investment adviser or dealer licensing status (if applicable).
All reasonable care has been taken by Société Générale to ensure that all statements of fact and opinion contained in the materials provided by a third party are fair, clear and not misleading. Nevertheless, Société Générale makes any representation or warranty regarding the accuracy of any information and is not responsible for this content in any way.
For any queries regarding SG Listed Products, please contact listedproducts@sgcib.com. This website is maintained by Société Générale, Exchange House, Primrose St, London EC2A 2HT.
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