Singapore Exchange (SGX) has, on Feb 15, welcomed UBS as its new daily leverage certificates (DLC) issuer.
The DLCs will commence trading on the same day. They comprise 10 long and short DLCs that offer a fixed leverage of up to seven times the daily performance of Tencent, Alibaba, Meituan, BYD and the Hang Seng Index. All five underlying stocks and indices are among the top 10 most traded DLCs on SGX in 2021, says the exchange.
The exchange was the first venue in Asia to offer DLCs, having launched the offering in July 2017.
“We are delighted to have UBS come onboard as an issuer of DLCs. Investors have come to recognise the benefits of using DLCs to capitalise on short-term price movements and market trends. As interest in listed structured products grows in Asia, we will continue to work with issuers to offer investors a wider suite of investment options,” says Michael Syn, head of equities at SGX.
“With DLCs linked to regional indices gaining popularity, we are also seeing interest from issuers to launch DLCs with US indices as the underlying,” he adds.
“We are pleased to be one of the key issuers of DLCs in Singapore, the first market in Asia to offer trading in the instruments. This is another important milestone for our retail structured product business in Asia, following the launch of our warrant business in 2008. The ability to issue DLCs in Singapore will allow us to offer even more structured product choices to investors, and better match their needs,” says Vassili Reperant, head of public distribution APAC at UBS.
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“The debut of UBS DLCs on the SGX allows us to offer even more structured product choices to investors and better match their needs,” says Winni Cheuk, Head of Sales, Public Distribution for APAC at UBS.
“We spotted quite a lot of volatility in the underlying Hong Kong stock names recently, and believe now is a good time to launch DLCs. This market environment allows investors who hold either a bullish or bearish view to gain more exposure with less required capital and a fixed daily leverage," she adds.
Shares in SGX closed at $9.74 on Feb 14.
Photo: Bloomberg
