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SGX to commence trading of Daily Leverage Certificates on July 17

Michelle Zhu Published on Mon, Jul 03, 2017 / 11:57 AM GMT+8

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SINGAPORE (July 3): Singapore Exchange (SGX) will commence trading of daily leverage certificates (DLCs) on Asian indices starting from July 17.

In a press release on Monday, the bourse says this makes it the first venue to offer trading in DLCs, which allow Specified Investment Products (SIP)-qualified investors to gain fixed leverage exposure to key Asian indices.

DLCs – which SGX notes to have received wide interest from investors in Europe, where they are also known as constant leveraged products or factor certificates – come without implied price volatility, time decay and margin calls, as well as features impacting pricing for options.