Societe Generale launches first US equity indices DLCs on S&P 500 in Singapore
Societe Generale has launched four Daily Leverage Certificates1 (DLCs) offering exposure to US equity indices, starting with the S&P 500® index.
The new products were listed for trading on the SGX Securities market from Friday, 4 March and include both long and short DLCs with a leverage of up to five-times the daily return of the S&P 500® index. The S&P 500® index tracks the 500 leading US companies and covers approximately 80% of available market capitalisation. It is widely recognised as a broader measure of the US economy.
Marcus Ng, Vice President, Cross Asset Listed Distribution, Societe Generale said: “Investors in Singapore are increasingly looking to diversify their exposure to the US market using a variety of trading strategies and products. The introduction of DLCs tracking US equity indices enables Singapore investors to gain long and short exposure to the US market during Singapore trading hours through their SGX securities trading account using Singapore Dollars. In addition to the S&P 500®, we are looking to cover more US market indices such as Nasdaq100 and Dow Jones Industrial Average Indices subsequently.”
Michael Syn, Head of Equities, Singapore Exchange (SGX) said: “The listing of Societe Generale’s Daily Leverage Certificates (DLCs) on the S&P500® index marks another important milestone for the expansion of SGX’s DLC suite beyond regional indices and single stocks. This is the first DLC in Asia that offers investors long and short exposure to the US market during Asian hours. We look forward to Societe Generale covering more US market indices in future, to meet the demand for Asian products that help investors navigate the US stock markets which have been particularly volatile.”
Societe Generale launched the first DLC in Asia on SGX in 2017 with DLCs tracking key Asian indices such as the Hang Seng Index, Hang Seng China Enterprises Index and MSCI Singapore Index followed by an expansion to Singapore and Hong Kong single stocks in 2018. Going strong into its 5th year of DLCs offering, the shelf has grown from an initial batch of 10 DLCs to 247 DLCs at the end of 2021, with over S$10 billion traded since inception. The addition of DLCs on US indices is a further testament of Societe Generale’s commitment to grow the listed Structured Products market in Singapore.
The S&P 500 DLCs are only traded during SGX market hours from 9am to 5pm when the US market is closed, hence the DLCs intra-day price movements will be closely linked to the performance of the e-mini S&P 500 futures2 which are traded during Asian hours.
The DLCs are for specified investment products (SIP) qualified investors only. For further information on the Daily Leverage Certificate on US equity index, please visit https://dlc.socgen.com/usdlc
1 A DLC is an exchange traded financial product that offers fixed daily leveraged exposure to an underlying asset, such as an index, allowing investors to trade and capture enhanced returns, both up and down, on short-term market moves.
2 E-mini S&P 500 is an electronically traded futures contract traded on the Chicago Mercantile Exchange’s Globex electronic trading platform. The E-mini S&P 500 futures is based on the underlying Standard & Poor’s 500 stock index. Made up of 500 individual stocks representing the market capitalisations of large companies, the S&P 500 Index is a leading indicator of large-cap U.S. equities.