Euronext will introduce options on Bill Ackman’s hedgefund Pershing Square. His hedgefund did an IPO on the Euronext Amsterdam last October. Can’t remember why exactly he decided to go for Amsterdam. Maybe wanted to open the exchange during his holiday trip.
As of May 29th options on Pershing Square Holding will be open for trading.
Options traded in US dollars
The Pershing Square stock is traded in US dollars. This means the options and strike prices will be traded in US dollars as well. However, it remains to be seen whether market makers will provide liquidity in these options (code PSH). Susquehanna will sign as usual, but can’t be called a committed market maker. Risk of empty screens.
Hedging your hedgefund stock with options sounds overly cautious. I bet good old Carl Icahn would be very interested in building positions in Pershing Square options.
- Details from Euronext here