05 January 2018
Listed Products Daily Turnover in 2017 Averaged S$76 million
  • In 2017, SGX listed Structured Warrants (SWs), Daily Leverage Certificates (DLCs) and Exchange Traded Funds averaged (ETFs) generated a combined daily average turnover of S$76 million (+75% vs 2016) with SWs contributing S$58 million (+90% vs 2016) of the total.
  • A new product class was launched and three new ETFs listed on SGX in the past year. SGX is Asia’s first venue to offer trading in DLCs while the new ETFs – Lion-Phillip S-REIT ETF, ONE STOXX ASEAN Select Dividend Index Fund and NikkoAM-Straits Trading Asia ex Japan REIT ETF – saw many firsts as well including the first REIT ETF with 100% Singapore REITs.
  • In the first three trading days of 2018, MSCI Singapore Index (SiMSCI) and Hang Seng Index (HSI) recorded price gains of +3.43% and +2.73% respectively. In the same period, 5x Long SiMSCI DLC (CIOW), 5x Long HSI DLC (CIUW) and HSI Call Warrant (CNRW) were among the most active with gains of +10.7%, +11.8% and +42.5% respectively based on last traded price.

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Listed Products Daily Turnover in 2017 Averaged S$76 million

SGX listed SWs, DLCs and ETFs generated a combined daily average turnover of S$76 million in 2017 (+75% vs 2016). Structured Warrants was the largest contributor, generating a daily average turnover of S$58 million in 2017 (+90% vs 2016). Majority of the turnover is from warrants with Hang Seng index underlying. 

Source: SGX

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New Products launched in 2017

Daily Leverage Certificates

Launched on 17 July 2017, the newest addition to the structured products space – Daily leverage Certificates – ended the year with an average daily turnover of almost S$14 million and a total traded value of S$1.6 billion since launch. DLCs offer investors an exchange-traded instrument to access the leveraged risk and returns of up to five times of the daily performance of key Asian indices, in both rising and falling markets. Of the 10 DLCs offered, the DLCs tracking the SiMSCI and HSI with 5 times leverage are the most actively traded. Click here to find out more.  

 

Lion-Phillip S-REIT ETF 

Lion Global Investors, together with Phillip Capital Management, launched their new REITs ETF – the Lion-Phillip S-REIT ETF – on SGX on 30th October 2017. This is the first REIT ETF on SGX and the world to comprise 100% Singapore REITs and is designed to provide investors with low-cost access to 23 high-quality S-REITs that offer sustainable income streams. The Lion-Phillip S-REIT ETF ended 2017 with a total AUM of S$124 million. Click here to find out more

 

ONE STOXX ASEAN Select Dividend Index Fund

On 5th April 2017, Thailand’s largest ETF issuer, One Asset Management, listed its first ETF – the ONE STOXX ASEAN Select Dividend Index Fund – on SGX. Before the launch, the fund existed as a non-listed mutual fund in Thailand. The Singapore listed version is similar, only structured as an ETF. The ETF tracks the underlying STOXX® ASEAN Select Dividend 30 Index, which consists of the region’s 30 highest dividend-paying stocks. Click here to find out more.

 

NikkoAM-Straits Trading Asia ex Japan REIT ETF

NikkoAM-StraitsTrading Asia ex Japan REIT ETF was launched by Nikko Asset Management and Straits Trading Company on 29 March 2017. The ETF tracks the FTSE EPRA/NAREIT Asia ex Japan REITs Net Total Return SGD Index, which is largely exposed to Singapore properties (61% of the assets), followed by Hong Kong (23%), China (8%), Malaysia (6%) and Indonesia (3%). The NikkoAM-StraitsTrading Asia ex Japan REIT ETF ended 2017 with a total AUM of S$101 million. Click here to find out more.

 

For more information on the three REIT ETFs listed on SGX, click here.

 

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Most Actives: SWs and DLCs

The MSCI Singapore Index (SiMSCI) and Hang Seng Index (HSI) were off to a positive start in 2018 alongside other Asian indices. SiMSCI and HSI recorded price gains of +3.43% and +2.73% respectively in the first three trading days of 2018. In the same period, 5x Long SiMSCI DLC (CIOW), 5x Long HSI DLC (CIUW) and HSI Call Warrant (CNRW) were among the most active with gains of +10.7%, +11.8% and +42.5% respectively based on last traded price.

 

Investors who want to gain leveraged exposure to the Hong Kong market or Singapore market may do so via the warrants or DLCs listed on SGX. Tabled below are the details of the Top 5 most active HSI warrants and the list of DLCs available.

 

Top 5 most active HSI Warrants in first three trading days of Jan 2018

 

Name

Stock Code

Call/ Put

Expiry Date

Strike Level

Trade Value (S$)

HSI 30800 MB ECW180227

CNRW

C

27-Feb-18

30800

54,213,945.00

HSI 29600 MB EPW180227

CNQW

P

27-Feb-18

29600

41,166,186.90

HSI 30400 MB ECW180130

CNFW

C

30-Jan-18

30400

7,916,455.80

HSI 29200 MB EPW180328

COKW

P

28-Mar-18

29200

7,828,199.90

HSI 28800 MB EPW180227

CONW

P

27-Feb-18

28800

7,203,595.60

Source: SGX (data as of 4 January 2018)

Click here to see the full list of recent warrant listings

DLCs available for trading on SGX 

 

Counter Name*

Underlying**

Stock Code

Type

Leverage

DLC SG5xLongMSG200714

MSCI Singapore Index

CIOW

Long

5x

DLC SG5xShortMSG200714

MSCI Singapore Index

CIXW

Short

5x

DLC SG3xLongHSI200714

Hang Seng Index

CIWW

Long

3x

DLC SG3xShortHSI200714

Hang Seng Index

CIVW

Short

3x

DLC SG5xLongHSI200714

Hang Seng Index

CIUW

Long

5x

DLC SG5xShortHSI200714

Hang Seng Index

CITW

Short

5x

DLC SG3xLongHSC200714

Hang Seng China Enterprises Index

CISW

Long

3x

DLC SG3xShortHSC200714

Hang Seng China Enterprises Index

CIRW

Short

3x

DLC SG5xLongHSC200714

Hang Seng China Enterprises Index

CIQW

Long

5x

DLC SG5xShortHSC200714

Hang Seng China Enterprises Index

CIPW

Short

5x

*[DLC][Issuer][Leverage factor][Long or Short][Underlying Index] [Expiry Date in YYMMDD]

**DLCs track the total return index of the respective underlying indices

 

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Specified Investment Products

Structured warrants and Daily Leverage Certificates are examples of Specified Investment Products (SIPs). The MAS has introduced measures for intermediaries to safeguard the interests of individual investors investing in SIPs, which are products with features that might be more complex in nature. Investors now have the opportunity to assess their qualifications to trade SIP or enhance their product knowledge through the SGX online portal available here. Speak to your broker to find out how you can qualify to trade SIPs.


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