21 July 2017
DLCs traded S$5.9m in the first 4 days since its listing on 17 July
  • The newest product listed on SGX – Daily Leverage Certificates (DLCs) – started trading on Monday, 17 July 2017 and generated S$5.9m in turnover in the first 4 days since its listing. Issued by Societe Generale, the 10 Long and Short DLCs track the SIMSCI, HSI and HSCEI.
  • Of the 10 DLCs available for trading, the 5x Long SIMSCI (CIOW) and 5x Short SIMSCI (CIXW) were the most actively traded with a combined traded value of S$3.4m. SIMSCI was relatively volatile this week – from Monday’s low of 366.35 points, the SIMSCI reached a high of 371.96 points on Thursday morning before falling sharply in the afternoon to close at 366.58 points.
  • 6 new Structured Warrants on the Hang Seng Index were listed this week by Macquarie and Vontobel. The Hang Seng Index (HSI) rebounded from Monday’s low at 26,353.83 points to close at 26,740.21 points on Thursday, generating a price gain of 1.02% for the week thus far.

SGX offers a wide range of listed products to cater to the various needs of investors in Asia. This includes exchange traded funds (ETFs), structured warrants (SWs) and the new daily leverage certificates (DLCs). In replacement of our Warrants on Wednesdays and ETF Fridays, we will be publishing a weekly products update every Friday where investors can find out more on the latest happenings in the SGX listed products space.

 

Description: Description: cid:image002.png@01D2D9FB.E03E3E80

DLCs generated S$5.9m in turnover in the first 4 days of trading 

The DLCs started trading on Monday, 17 July 2017, and have generated S$5.9m in turnover in the first 4 days since its listing. Of the 10 DLCs available for trading, the 5x Long SIMSCI (CIOW) and 5x Short SIMSCI (CIXW) were the most actively traded with a combined traded value of S$3.4m. SIMSCI was relatively volatile this week – from Monday’s low of 366.35 points, the SIMSCI reached a high of 371.96 points on Thursday morning before falling sharply in the afternoon to close at 366.58 points.

The charts below plots the historical intraday bid price of the 5x Long and 5x Short SIMSCI DLCs against the historical intraday prices of the SIMSCI over the past 4 days. DLCs offer the flexibility to trade both rising and falling markets which means investors can buy the 5x Long SIMSCI DLC to benefit from bullish movements in SIMSCI and conversely investors can buy the 5x Short SIMSCI DLC to benefit  from bearish movements. To read the market update on the SIMSCI and the SIMSCI DLCs that was published earlier this week, click here.

5x Long SIMSCI (CIOW)

Description: cid:image003.png@01D30224.8981A6D0

5x Short SIMSCI (CIXW)

Description: cid:image004.png@01D30224.8981A6D0

Source: Bloomberg (data as of 20 July 2017)

 

The table below highlights the past daily performance of the SIMSCI and the intrinsic daily performance of the 5x SIMSCI DLCs. From the table, you can see that the 5x Long SIMSCI fell -6.02% on 20 July which is 5 times that of the fall in the SIMSCI (5 X -1.21%) after taking into account overnight cost and fees. DLCs offer investors fixed leverage of 3 to 5 times of the daily performance of the underlying index, be it a rising or falling market. So if the underlying index moves by 1% from its closing price of the previous trading day, the value of the 5x DLC will move by 5% before cost and fees.

 

SIMSCI

5x Long SIMSCI (CIOW)

 

5x Short SIMSCI (CIXW)

 

Date

Daily Performance

Intrinsic Closing Value

Intrinsic Daily Performance

Daily Tick movement

(High-Low)

Intrinsic Closing Value

Intrinsic Daily Performance

Daily Tick movement

(High-Low)

14/07/2017

 

2.500

 

 

2.500

 

 

17/07/2017

0.46%

2.556

2.24%

6

2.442

-2.32%

6

18/07/2017

0.35%

2.600

1.72%

9

2.399

-1.76%

8

19/07/2017

0.68%

2.689

3.42%

12

2.317

-3.42%

10

20/07/2017

-1.21%

2.527

-6.02%

21

2.456

6.00%

17

                     

Source: Societe Generale (dlc.socgen.com), Bloomberg      

Note: Intrinsic Closing Value is computed according to the valuation formula of the Certificates. The intrinsic closing values are after overnight cost and fees.

 

The details on the 10 DLCs available for trading are highlighted in the table below.

 

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

 

Description: Description: cid:image002.png@01D2D9FB.E03E3E80

Structured Warrants

The average daily traded value for the Structured Warrants for July MTD is S$59.8m and in the past week there was higher than average activity as shown in the in the chart on the right where the daily traded value hit a high of S$90.7m on Tuesday, 18 July.

 

The most active index warrant in July MTD is Hang Seng warrant (CIHW) with exercise level 24800 and expiry date of 30 August 2017. The HSI rebounded from Monday’s low at 26,353.83 points to close on Thursday at 26,740.21 points, up 1.02% for the week.

 

There were 6 new Hang Seng warrant listings consisting of 3 calls and 3 puts this week. The table below highlights the details of these 6 new listings.

Description: cid:image005.png@01D30224.8981A6D0

 

Name 

Stock Code

Issuer

Call/Put

Expiry Date

Strike Level 

Listing Date

HSI25988VTeCW170928

CJRW

VT

C

28-Sep-17

25988

20-Jul-17

HSI24688VTePW170928

CJSW

VT

P

28-Sep-17

24688

20-Jul-17

HSI26200MBePW170928

CJUW

MB

P

28-Sep-17

26200

20-Jul-17

HSI27200MBeCW170830

CJOW

MB

C

30-Aug-17

27200

18-Jul-17

HSI27400MBeCW170928

CJPW

MB

C

28-Sep-17

27400

18-Jul-17

HSI25800MBePW170830

CJQW

MB

P

30-Aug-17

25800

18-Jul-17

Source: SGX (data as of 20 July 2017)

 

Description: cid:image002.png@01D30224.8981A6D0

 

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.

 

Description: cid:image002.png@01D30224.8981A6D0

 

Education and Resources

 

Trading Warrants on SGX

Trading DLCs on SGX

Description: Description: cid:image007.png@01D0FB70.0766C930

  • More educational videos  (link)
  • SGX Structured Warrant investor guide (link)

Description: cid:image008.png@01D30224.8981A6D0

  • SGX DLC investor guide (link)
  • SGX DLC factsheet (link)
  • SGX DLC Infographic (link)

 


My Gateway & SGX StockFacts

cid:image007.png@01D2BDD0.57B4CE40

 

My Gateway

 

SGX’s investor education portal with market, product and investment information and events. Sign up now at sgx.com/mygateway to receive our investment updates and economic calendar.

 

 

cid:image007.png@01D2BDD0.57B4CE40

 

SGX StockFacts

 

Whether you are seeking new or established companies to invest in, SGX StockFacts can provide you with the information you need to identify and understand the stocks that best fit your investment strategy. Visit now at sgx.com/stockfacts.

www.sgx.com

This document is not intended for distribution to, or for use by or to be acted on by any person or entity located in any jurisdiction where such distribution, use or action would be contrary to applicable laws or regulations or would subject Singapore Exchange Limited (“SGX”) to any registration or licensing requirement. This document is not an offer or solicitation to buy or sell, nor financial advice or recommendation for any investment product. This document is for general circulation only. It does not address the specific investment objectives, financial situation or particular needs of any person. Advice should be sought from a financial adviser regarding the suitability of any investment product before investing or adopting any investment strategies. Use of and/or reliance on this document is entirely at the reader’s own risk. Further information on this investment product may be obtained from www.sgx.com. Investment products are subject to significant investment risks, including the possible loss of the principal amount invested. Past performance of investment products is not indicative of their future performance. Examples provided are for illustrative purposes only. While each of SGX and its affiliates (collectively, the “SGX Group Companies”) have taken reasonable care to ensure the accuracy and completeness of the information provided, each of the SGX Group Companies disclaims any and all guarantees, representations and warranties, expressed or implied, in relation to this document and shall not be responsible or liable (whether under contract, tort (including negligence) or otherwise) for any loss or damage of any kind (whether direct, indirect or consequential losses or other economic loss of any kind, including without limitation loss of profit, loss of reputation and loss of opportunity) suffered or incurred by any person due to any omission, error, inaccuracy, incompleteness, or otherwise, any reliance on such information, or arising from and/or in connection with this document. The information in this document may have been obtained via third party sources and which have not been independently verified by any SGX Group Company. No SGX Group Company endorses or shall be liable for the content of information provided by third parties. The SGX Group Companies may deal in investment products in the usual course of their business, and may be on the opposite side of any trades. SGX is an exempt financial adviser under the Financial Advisers Act (Cap. 110) of Singapore.  The information in this document is subject to change without notice. This  document shall not be reproduced, republished, uploaded, linked, posted, transmitted, adapted, copied, translated, modified, edited or otherwise displayed or distributed in any manner without SGX’s prior written consent.