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What we do

Options on adjudication are innovative financial instruments offered by auction houses for sellers of artworks, whose low estimate goes beyond $1 million, allowing them to guarantee a sale price by transferring risk on investors in call warrants obtained by securitisation of options.
 
The art auction options have been designed to bring more liquidity to the art market, and allow the public to bet on the hammer prices of the star works of the sales. The initial value of the option is equal to the guaranteed price minus the reserve price set by the seller, plus the various commissions. The initial price of the warrants is equal to the initial price of the option divided by the number of warrants issued by the bank. The option maturity is the expected adjudication date of the piece of art at the auction room.
 
Algopole designed a very innovative pricing methodology for this new kind of option. Algopole's objective is to integrate these new warrants, resulting from the securitisation of options, into bank trading platforms, and offer all functionalities for trading, market making, position tracking, and risk management on these products. More to read ...

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Office:

AlgoPole

88-90 Hatton Garden

EC1N 8PG LONDON

United Kingdom

Email:  info@algopole.com

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