SGX will be listing daily leverage certificates

It will be the first in Asia to do so.

Singapore Exchange (SGX) announced that it will be commencing the trading of Daily Leverage Certificates (DLCs) on Asian indices starting from July 17.

SGX is Asia’s first venue to offer trading in DLCs, allowing Specified Investment Products (SIP)-qualified investors to gain fixed leveraged exposure to key Asian indices.

The first batch of DLCs issued by Societe Generale will consist of 10 products, including Long and Short DLCs offering fixed leverage of three or five times the daily returns of the underlying indexes, namely MSCI Singapore, Hang Seng Index (HSI) and Hang Seng China Enterprises Index (HSCEI). 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.

Commenting on this, SGX head of equities and fixed income Chew Sutat said, “SGX is pleased that Societe Generale, one of the largest issuers of DLCs in Europe, has chosen Singapore as the first venue in Asia to launch DLCs, one of the fastest growing listed structured products in Europe since 2012. This first-of-its-kind offering in Asia will provide investors in the region an exchange-traded instrument to capture leveraged returns on daily market moves. We welcome and look forward to such offerings that meet the evolving needs of investors in Asia.”
 

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