SGX Expands Range Of Daily Leverage Certificates With 7x Leverage

• First batch of DLCs generated total turnover of S$1.6 billion in less than six months
• A new set of higher leverage DLCs will start trading on 24 January 2018

Following the debut launch of Daily Leverage Certificates (DLCs) in July 2017, SGX will welcome an expanded suite of DLCs to be issued by Societe Generale with 7x leverage.

The six new DLCs issued by Societe Generale offer seven times long or short exposure to the daily returns of the underlying indexes, namely MSCI Singapore, Hang Seng Index (HSI) and Hang Seng China Enterprises Index (HSCEI).  The new set of DLCs will list and commence trading on 24 January 2018, adding to the existing suite of DLCs listed by Societe Generale which offer three times and five times leverage, long and short exposure on the same indices.

Singapore was Asia’s first venue to offer trading in DLCs, offering Specified Investment Products (SIP)-qualified investors a new product to gain fixed leveraged exposure to key Asian indices. The first batch of DLCs started trading on 17 July 2017 and have since generated a total turnover of S$1.6 billion.

DLCs have received wide interest from investors in Europe where they are also called constant leveraged products or factor certificates. DLCs come without implied price volatility, time decay and margin calls, features impacting pricing for options. The Long and Short DLCs, designed to be traded predominantly on an intra-day basis, offer the flexibility to benefit from both rising and falling markets.

Luuk Strijers, Head of Products, Equities and Fixed Income, SGX, said, “SGX is pleased that Societe Generale is expanding its DLCs offering in Singapore, after its inaugural launch six months ago. DLCs remain one of the fastest growing type of listed structured products in Europe since 2012, and we are delighted to offer this product to investors in Singapore, where market interest for listed structured products continues to grow.”  

Keith Chan, Head of Cross Asset Listed Distribution at Societe Generale’s Global Markets in Asia Pacific, said, “DLCs are proving to be an effective investment vehicle of growing popularity for investors looking to capture short term market opportunities. Societe Generale is expanding its DLC product range in Singapore together with SGX to further meet the growing demand we’ve seen from Asia. We are also encouraged to hear the positive feedback on our market-making quality especially the tight bid-ask spread we have maintained, from traders who have been trading our DLCs since the launch.”

For more information on SGX-listed DLCs, visit sgx.com/DLC.

SGX Academy will be conducting a series of DLC educational sessions, with the first session scheduled on the launch day, 24 January. Investors interested in trading DLCs are encouraged to attend these educational sessions to learn more about the product. Please visit sgx.com/academy for programme schedule and details.

Please refer to Annex A for the full list of DLCs listed on SGX.

Annex A - List of Daily Leverage Certificates (DLCs) on SGX Mainboard

 * The underlying indices are respectively the Net Total Return version for Long DLCs and the Total Return version for Short DLCs. The term sheets with full details of the products, including the associated risk factors, are available on dlc.socgen.com

** [DLC] [Issuer] [Leverage factor] [Long or Short] [Underlying Index] [Expiry Date in YYMMDD]

Note: Counters denoted in bold and denoted with "7x"will commence trading on 24 January 2018