Societe Generale expands daily leverage certificates offerings on Singapore bourse

They will start trading from November 7.

Societe Generale is expanding its daily leverage certificates (DLC) offerings with the addition of 20 DLCs offering exposure to single stocks in a bid to cater to investors with larger risk appetites.

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 which were assessed based on investor demand, liquidity, trading volume and market cap. This includes stocks of banking heavyweights DBS, UOB and OCBC, Singapore Telecommunications Limited, Venture Corporation Limited and Keppel in Singapore, as well as Tencent Holdings Limited, Ping An Insurance Company of China, Ltd., PetroChina Company Limited and CNOOC Limited in Hong Kong.

The new additions brings the bank’s total DLC offerings by Societe Generale to 38 and will be listed from 7 November 2018.

“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,” Keith Chan, head of cross asset listed distribution for global markets in Asia Pacific at Societe Generale, said in a statement.

Since their introduction in Q3 2017, the bank’s DLCs represent S$3.5b in total turnover.

“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,” Chan Kum Kong, head of research and product at SGX added.

SGX was the first Asian bourse to offer trading of DLCs in July 2017. It hosts the trading on three developed market indices: MSCI Singapore, HSI and Hang Seng China Enterprises Index, with leverage levels of 3, 5 and 7 times.