Citibank, in conjunction with the Bourse de Montreal Inc., have introduced of a new financial product — Sponsored Options. Sponsored Options are an RRSP-eligible product that gives investors the opportunity to participate in the Canadian and global markets, leverage their investments and hedge their portfolios — all in Canadian dollars.

Sponsored Options are a financial derivative issued by the Canadian Derivatives Clearing Corporation , and sponsored by financial institutions approved by the Bourse de Montreal Inc. They are highly liquid options issued on Canadian and international equities, stock indices and exchange-traded funds. The Bourse provides a market model for Sponsored Options that safeguards the transparency of trading and ensures liquidity and competitive prices.

“Sponsored Options are another example of Citibank’s global strength and ability to bring innovative products and services to corporations and consumers across Canada”, said Michael Roberts, chairman and CEO, Citibank Canada.

Citibank, through Salomon Smith Barney Canada, will begin trading Sponsored Options based on well-known Canadian companies such as TD Bank, Bombardier, Ballard Power Systems and Celestica, and U.S. firms including GE, AOL Time Warner, Amgen, Intel, Microsoft and Yahoo!. Sponsored Options will also be issued on the NASDAQ 100 Index tracking stock and the iUnits S&P/TSE 60 Index Participation Fund. Throughout the year, Citibank will expand its Sponsored Options offerings to include underlyings from Europe.

Although new to Canada, Sponsored Options are based Citibank’s experience offering similar products to investors in Europe and Asia. Citibank, through its Citiwarrants group, has been bringing the opportunities that Sponsored Options provide to those markets for over 15 years.

Sponsored Options will trade exclusively on the Bourse de Montreal.