SGX launches leveraged and inverse products from Phillip Capital

Stock ticker at SGX building on Shenton Way; taken October 2018.Stock ticker at SGX building.

Singapore Exchange (SGX) said Wednesday it launched leveraged and inverse products from Phillip Capital Management, with the listing of the Phillip MSCI Singapore Daily (2X) Leveraged and Phillip MSCI Singapore Daily (minus 1x) Inverse Products (L&I products).

The products will offer both institutional and retail investors capital efficient ways to both leverage and hedge exposure in the Singapore market, SGX said, adding the offerings are the first locally domiciled L&L products listed on SGX.

Phillip Capital’s new products provide exposure which is two times and one-time inverse, respectively, the daily return of the MSCI Singapore Index, by investing in and replicating the performance of the SGX MSCI Singapore Free Index Futures (SiMSCI), SGX said.

“There is clear demand, especially in Asia, for convenient and amplified access to highly popular indices. With this listing, investors can express market views without having to engage in traditional leverage strategies that require margin monitoring or shorting,” Michael Syn, head of equities at SGX, said in the statement.

“This aligns with our goal to provide global investors with liquid and efficient investment and risk-management tools, for both long-term investing and tactical use,” he said.

Linus Lim, director and CEO of Phillip Capital Management, said the products allow investors and traders to take positions on their near-term market outlook, with bullish players able to ride the leveraged product, and bearish ones set to use the inverse product to take advantage of market weakness or hedge their portfolio.