but they will participate in the market directly to hedge their positions, that's where the finance charge comes from. At the end of the day, brokers and warrant issuers are not taking any position.

according to SG's marketing head, only DB and SG are using fully automated system to hedge their warrant positions. The rest warrant issuers are using semi-automated system. system will only prompt when market moves, a human being must sit down there and change the pricing and spread.
我想，这也解释了上次牛魔王指出的STI warrant出现pricing误差的问题。那个管事的拉肚子去厕所了。。。呵呵