Societe Generale launches Asia’s first Single Stock DLCs on the Singapore Exchange
Addition of 20 new products to existing DLC offerings in response to investor demand
Societe Generale, the first bank to launch Daily Leverage Certificates (DLCs) in Asia on the Singapore Exchange (SGX) in July 2017, today announced the launch of Asia’s first 20 DLCs1 offering exposure to single stocks.
The new products include both long and short DLCs with a fixed leverage of up to five-times the daily returns of 10 underlying stocks consisting of DBS Group Holdings Ltd. (DBS), UOB Overseas Bank Limited (UOB), Overseas-Chinese Banking Corporation Limited (OCBC), Singapore Telecommunications Limited (Singtel), Venture Corporation Limited (Venture) and Keppel Corporation Limited (Keppel) in Singapore, as well as Tencent Holdings Limited (Tencent), Ping An Insurance (Group) Company of China, Ltd. (Ping An), PetroChina Company Limited (PetroChina) and CNOOC Limited (CNOOC) in Hong Kong. These companies were selected based on investor demand as well as their liquidity, trading volume and market capitalisation.
The 20 new DLCs will be listed on the SGX from 7 November 2018, enabling investors to select from a total of 38 DLCs offered by Societe Generale.
The extension of Societe Generale’s DLCs range comes in response to growing investor demand. Since their introduction in Q3 2017, Societe Generale DLCs represent S$3.5 billion in total turnover2 and the number of active trading accounts of DLCs also registered significant growth on a quarter-on-quarter basis – 20.4% in Q4 2017, 61% in Q1 2018, 23.1% in Q2 2018 and 21.5% in Q3 20183.
Keith Chan, Head of Cross Asset Listed Distribution for Global Markets in Asia Pacific at Societe Generale, said, “As a pioneer and leading provider of listed structured products in Asia, Societe Generale is excited to be bringing another first to the market with the expansion of our DLC product suite that will provide an even broader spectrum of investment choices for the market. 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.
“Our 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.”
Chan Kum Kong, Head of Research and Product, SGX, said, “We are pleased that Societe Generale is expanding its DLC shelf in Singapore for the third time in less than two years, a testament to the growing appeal of DLCs amongst investors. 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.”
Operated with a 15% air bag mechanism4, single stock DLCs allow investors with a shorter-term view to gain more exposure with less required capital, and for longer-term stock investors to hedge against any short-term downward movements with short DLCs.
1 Only available to investors who are qualified to invest in Specified Investment Products (“SIP”)
2 Source: SGX
3 Source: SGX
4 See below notes to the editors
Details of all available Daily Leverage Certificates can be found on dlc.socgen.com
This press release does not form part of any offer or invitation to buy or sell any DLCs, and nothing herein should be considered as financial advice or recommendation. The price may rise and fall in value rapidly and holders may lose all of their investment. Any past performance is not indicative of future performance. Investments in DLCs carry significant risks.