The 28 securities were selected after meeting liquidity and market capitalisation requirements, as well as interest from market participants. Except for the final three on the list, all the securities below are component stocks of the Straits Times Index (STI).
The 28 securities are:
1. | Capitaland Limited | 15. | SembCorp Industries Ltd |
2. | CapitaMall Trust | 16. | SembCorp Marine Ltd |
3. | City Developments Limited | 17. | Singapore Airlines Ltd |
4. | Cosco Corporation (S) Ltd | 18. | Singapore Exchange Limited |
5. | DBS Group Holdings Ltd | 19. | Singapore Press Hldgs Ltd |
6. | Fraser and Neave, Limited | 20. | Singapore Tech Engineering Ltd |
7. | Genting Int’l Public Ltd Co | 21. | SingTel |
8. | Golden Agri-Resources Ltd | 22. | StarHub Ltd |
9. | Keppel Corporation Limited | 23. | United Overseas Bank Ltd |
10. | Keppel Land Limited | 24. | Wilmar International Limited |
11. | Neptune Orient Lines Limited | 25. | Yanlord Land Group Limited |
12. | Noble Group Limited | 26. | ComfortDelGro Corporation Ltd |
13. | Olam International Limited | 27. | SMRT Corporation Ltd |
14. | Oversea-Chinese Banking Corp | 28. | streetTRACKS® STI Exchange Traded Fund (ETF) |
ES contracts will be a new product class on the SGX Securities Trading (SGX-ST) market. Its launch is aimed at expanding the current suite of equity products available to investors. The new product allows investors to buy into an underlying stock listed on SGX at the transacted price on the day of the trade, for settlement at a specified future date.
Investors will have to put up an initial margin to trade ES contracts, which will be marked to market. ES contracts provide investors with an exchange-listed and -traded alternative to unregulated over-the-counter trades.
The key features of ES contracts are detailed in the Annex.
1 The inaugural ES contracts will start trading on 20 February 2009 instead of 25 February 2009, to give investors more trading days to familiarise themselves with this new product.
Annex
The key features of ES contracts are:
§ Each contract tenure will be about 35 days, starting from the 25th of each month until the last trading day (LTD) of the contract month, i.e. the 31st of the following month.
§ If the 25th and/or 31st are non-trading days, the contract will start from and/or end on the trading day immediately before those dates. For example, an ES contract that starts trading on 24 April 2009 will have its LTD on 29 May 2009, as 25 April and 31 May 2009 are both non-trading days.
§ Settlement will take place by way of delivery of the underlying securities on LTD plus three days (LTD+3). If bought on the first day of the ES contract, this gives investors up to 38 days to settle the contracts with the actual securities – 35 days longer than for normal securities investments.
§ Margins, which are a fraction of the full trade value, are required to be paid to trade ES contracts. SGX’s margins range from 5% to 20% of the cost of one lot of the underlying stock. The full amount of the trade is payable on settlement day, which is LTD+3.
Disclaimer:
SGX and its affiliates accept no liability whatsoever arising from investors trading in SGX-listed products. Investors should seek advice from a professional financial adviser regarding the suitability of SGX-listed products, taking into account their specific investment objectives, financial situation and particular needs before trading in, or adopting any investment strategies involving, SGX-listed products.
