Important:
Daily Leverage Certificates are Specified Investment Products (SIP) which have structures, features and risks that may be more complex. They are designed for short-term trading and are for investors who are willing to accept the risk of substantial losses up to the principal investment amount, possibly within a very short time frame. DLC (Daily Leverage Certificates) may only be suitable for clients who have passed CAR (Customer Account Review) requirements.
Investors can now trade the S&P 500, Nasdaq-100 and Dow Jones Indices with up to 7 times leverage during Asian hours using SocGen’s Daily Leverage Certificates (DLCs). The US indices DLCs, which are traded on SGX and trade in SGD, offer 5 times or 7 times Long/Short exposure to the daily performance of the US equity indices on close-to-close basis.
The fixed daily leverage payoff of the DLCs are similar to that of the leverage/inverse (L&I) ETFs listed in the US markets, for example the Proshares UltraPro S&P 500 or Nasdaq-100 (TQQQ/SQQQ/SPXU/UPRO), however these DLCs are at 5 or 7 times leverage compared with the 3 times on the US L&I ETFs and are in certificate form as opposed to a fund structure. These L&I ETFs tripled in their trading volumes in 2022 year-to-date compared to the same period in 2021.. Huge potential for the US indices DLCs if we can grab a piece of/enlarge the pie!
Note that the US indices DLCs can only be traded during SGX market hours 9am to 5pm, where SocGen as the Designated Market Maker will provide continuous Bid and Offer quotations on the DLCs. As the US market is closed, the DLCs intra-day price movements will be closely linked to the performance of the e-mini S&P 500 & Nasdaq-100 & Dow Jones Futures respectively which are traded during Asian hours. Overnight when the US market is open, the US indices DLCs will continue to track the respective underlying US equity indices with the fixed leverage performance however the DLCs cannot be traded.
The US Indices DLCs may be useful for investors looking to hedge their portfolio or get in ahead of the US market open in the case of any high impact news during Asian hours. For more information, visit SocGen’s DLC website for the US indices mini-page here or for the full list of DLCs here.
Please let me know if you would like to hold a seminar on the US indices DLCs for your clients and we’d be happy to provide all the support needed!
P.S. 7x S&P 500 DLCs to start trading this Friday, 21 October
Source: DLC.socgen.com
This advertisement has not been reviewed by the Monetary Authority of Singapore.
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