SGX Launches Single Stock Daily Leverage Certificates With 5x Leverage

• Widens investor choice with new DLCs based on individual Singapore and regional stocks
• Trading value of DLC product suite has reached over S$3.5 billion since its launch  

Come 7 November 2018, SGX will welcome the listing of an initial batch of 10 new Single Stock Daily Leverage Certificates (DLCs), offering 5x leverage on Singapore blue-chip companies and well-known regional stocks.

Issued by the current DLC issuer, Société Générale, the Single Stock DLCs offer Specified Investment Products (SIP)-qualified investors the ability to take long or short positions with leverage, on the daily performance of the underlying stocks. The first batch of stocks includes selected Straits Times Index (STI) companies and Hang Seng Index (HSI) stocks such as Tencent Holdings and Ping An Insurance Group.

SGX was the first bourse in Asia to offer trading of DLCs in July 2017. Today, SGX hosts the trading of 18 DLCs on three developed market indices, namely MSCI Singapore, HSI and Hang Seng China Enterprises Index, with leverage levels of 3, 5 and 7 times. Since the introduction of the first DLC, the turnover of DLCs traded on SGX has exceeded S$3.5 billion.

Chan Kum Kong, Head of Research and Products, SGX, said, “We are pleased that Société Générale is expanding its DLC shelf in Singapore for the third time in less than two years, a testament to the growing appeal of DLCs amongst investors. This will also broaden the range of innovative and attractive trading products offered by brokers. DLCs offer investors the opportunity to benefit from both rising and falling markets. With DLCs gaining traction from both retail and institutional participants, we expect the demand for our listed structured products to continue to grow in tandem.”

Keith Chan, Head of Cross Asset Listed Distribution at Société Générale’s Global Markets in Asia Pacific, said, “As a pioneer and leading provider of listed structured products in Asia, Société Générale is excited to be bringing another first to the market with the expansion of our DLC product suite that will provide an even broader spectrum of investment choices for the market. We have been receiving positive feedback on the DLCs since their introduction to the market last summer, and we think it is the right time to expand the underlying coverage to single stocks. Our proven global equity derivatives leadership and experience with DLC products in Europe and Asia enables us to deliver a unique and tailored product offering to the market that matches investor appetite.”

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

SGX Academy conducts a series of DLC educational sessions. Investors who are keen on trading in 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

* For index DLC, naming convention is [DLC] [Issuer] [Leverage factor] [Long or Short] [Underlying Index] [Expiry Date in YYMMDD]. For single stock DLC, naming convention is [DLC] [Issuer] [Leverage factor] [Long or Short] [Underlying Index].

Note: Counters denoted in blue will commence trading on 7 November 2018