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10 new single stock daily leverage certificates to start trading from Nov 7: SGX
A BATCH of 10 new single stock daily leverage certificates (DLCs) issued by Société Générale, which offer 5x leverage on Singapore blue-chip companies and regional stocks, will be listed on Singapore Exchange (SGX) next Wednesday.
It is the third time in less than two years that SocGen is increasing its DLC offerings in Singapore.
The new DLCs will allow Specified Investment Products (SIP)-qualified investors the ability to take long or short positions with leverage, on the daily performance of the underlying stocks.
This will add to the existing 18 DLCs on three developed indices - namely MSCI Singapore, HSI and Hang Seng China Enterprises Index -which offer 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, said SGX.
Chan Kum Kong, SGX head of research and products, said the new offering is "a testament to the growing appeal of DLCs amongst investors."
He said: "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: “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.
"(SocGen's) 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.”