To The Moon

Daily Leverage Certificates (DLCs) are listed exclusively on the Singapore Exchange (SGX), which remains the only exchange in Asia offering these instruments. The current product range comprises over 300 DLCs referencing more than 65 underlying equities, indices, and ETFs across three major global markets. These instruments provide fixed leverage of 3x, 5x, or 7x, enabling investors to gain amplified exposure to short-term market movements, which can magnify both gains and losses. 

DLCs can be used to express directional views or as part of tactical strategies, including hedging against market volatility through short exposure. Their structure allows for flexibility in responding to changing market conditions, but they are generally not intended for long-term holding due to daily reset and compounding effects. 

As DLCs on SGX approach their ninth year, the following highlights summarize key recent developments across the product suite. 

DLCs on ETFs

In 2H26, SGX Securities will introduce DLCs linked to selected ETFs, extending our product suite beyond indices and single stocks. This allows investors to take leveraged long or short positions across sectors and commodities.  
 
The initial rollout will focus on Gold and Silver, enabling investors to capitalize on heightened price volatility. For instance, gold has been significantly repriced in recent years due to factors such as strong central bank demand, inflation hedging, and its role as a risk off asset – offering new opportunities for leveraged positioning and portfolio hedging. 

DLCs on U.S. Equities

Launched in October 2024 and issued by SocGen, these DLCs provide three-times leveraged long or short exposure to U.S. equities. The current lineup includes major names from the “Magnificent Seven” — leading technology companies that have been key drivers of global market performance. Additionally, DLCs on AMD, Broadcom, Micron, and Nvidia enable investors to express targeted views on the semiconductor sector. 

Key Proposition of U.S. Stock DLCs

• Leveraged long / short positions: Take positions easily without the hassle of margin requirement.

• Trade on market-moving events: Capitalise on earnings and other market-moving events during Asia hours. 

• Leveraged exposure: Gain leveraged access during Asia hours, trading conveniently in SGD. 

Short-term trader? Consider DLCs

DLCs designed to be traded on a short-term or intra-day basis. 

A 3x DLC offers investors a fixed leverage of three times of the daily performance of the underlying stock. 

How it works

1. Bullish? Choose a 3x Long DLC to gain 3% (before cost and fees) for every 1% rise in the underlying asset, and similarly incur losses if the underlying declines.

2. Bearish? Opt for a 3x Short DLC to gain 3% (before cost and fees) for every 1% fall in the underlying asset, while losses occur if prices rise.

Visit www.sgx.com/dlc for more information. 

Risk Note: Losses are amplified the same way. A 1% drop in the underlying asset means a 3% loss (before cost and fees) in a 3x Long DLC. Your entire invested capital is at risk, but the maximum total loss will not be more than the total invested capital.

Trading Information

The following Gold and Silver DLCs will be listed and available for trading.

Investor Suitability

Daily Leverage Certificates (DLCs) 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. Investors should also have sufficient understanding of the product and should possess either a high level of knowledge or sufficient trading experience to properly evaluate and assess the product structure, associated risks, valuation, costs and expected returns. 

All investors need to be Specified Investment Products (SIP) qualified to invest in DLCs. DLCs seek to achieve short-term investment results that correspond to the daily magnified performance of the underlying asset.