Investec in South Africa is to list a new category of leveraged with stop loss products on the Johannesburg Securities.

The product, called HotEDS, will be similar to EDS (Enhanced Dividend Securities) in that investors will benefit by receiving the same dividends as the underlying share for a discounted price, but are even more "turbo-charged", offering three times gearing to share price movements.Richard Swain, responsible for Investec's listed equity derivatives products, told iafrica.com that the product will be listed with nine months to maturity in the hope of capturing both bi-annual dividend distributions of qualifying underlying shares.

The products will be listed on 10 August covering a selection of JSE-listed blue-chips with an issue price expected to be 30%-35% of the underlying stock and a strike of 75%.

It was reported in June that Investec Securities, the brokerage arm of South Africa's fifth-largest bank, had doubled its share of the R10.5bn ($1.54bn) local warrant market since hiring Brett McLaren and Richard North in May from rival Nedbank Group, which it displaced as the second-ranked warrants trader behind Standard Bank Group.

Swain told Business Report that Investec Securities had seen its share of the warrant market jump from about 20% to 35%/40% since it hired the traders.