Tullett Prebon has formed a property derivatives trading desk.
The move is designed to capitalize on the potential of the UK commercial property market under management.
Property derivatives are financial instruments that allow the investor to gain or hedge exposure to the UK commercial property market without having to physically buy or sell the asset and incur costs.
The market in the UK is expected to grow fast and Deloitte estimates it could be £20 billion turnover within three years.
Henry Ann, Head of New Business, said, “We have been researching the market for some time now and believe there is a growing demand for new and viable ways to access the returns offered by the property market and hedge exposures without the trading in physical assets.”
References: EGi News 26/07/05
