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- UBS will list 10 new DLCs to meet growing demand for Asia-access structured products
- Pioneered in 2017, SGX-listed DLCs have generated over S$10 billion of trades since launch
Singapore Exchange (SGX) is pleased to welcome UBS as its new Daily Leverage Certificates (DLCs) issuer, offering investors more options to hedge and capture investment opportunities in Asia.
The DLCs, which commence trading today, comprise 10 Long and Short DLCs offering a fixed leverage of up to seven times the daily performance of Tencent, Alibaba, Meituan, BYD and the Hang Seng Index. All five underlying stocks and indices are among the top 10 most traded DLCs on SGX in 2021.
SGX was Asia’s first venue to offer DLCs, enabling Specified Investment Products (SIP)-qualified investors to gain fixed leveraged exposure to key Asian indices at a fraction of the underlying price. Since the launch of DLCs in July 2017, SGX has grown the market and expanded its shelf to about 250 DLCs covering Singapore and Hong Kong indices and single stocks, with over S$10 billion crossing hands.
Michael Syn, Head of Equities, SGX, said, “We are delighted to have UBS come onboard as an issuer of DLCs. Investors have come to recognise the benefits of using DLCs to capitalise on short-term price movements and market trends. As interest in listed structured products grows in Asia, we will continue to work with issuers to offer investors a wider suite of investment options. With DLCs linked to regional indices gaining popularity, we are also seeing interest from issuers to launch DLCs with US indices as the underlying.”
Vassili Reperant, Head of Public Distribution APAC, UBS, said, “We are pleased to be one of the key issuers of DLCs in Singapore, the first market in Asia to offer trading in the instruments. This is another important milestone for our retail structured product business in Asia, following the launch of our warrant business in 2008. The ability to issue DLCs in Singapore will allow us to offer even more structured product choices to investors, and better match their needs.”
For more information on SGX-listed DLCs, visit sgx.com/DLC
