SGX adds UBS as a DLC issuer with 10 new products

Signage at the SGX building on Shenton Way in Singapore; taken October 2018.Signage at the SGX building on Shenton Way in Singapore; taken October 2018.

Singapore Exchange (SGX) has added UBS as a new Daily Leverage Certificate (DLC) issuer, with the Swiss bank listing 10 new DLCs Tuesday, the exchange said in a filing to SGX.

The 10 long and short DLCs from UBS offer a fixed leverage of up to seven times the daily performance of Tencent, Alibaba, Meituan, BYD and the Hang Seng Index, SGX said.

The DLCs let qualified specified investment product (SIP) investors get fixed leverage exposure to key Asian indexes at a fraction of the underlying price, the filing said.

Since launching DLCs in 2017, SGX’s offering has growth to around 250 products covering Singapore and Hong Kong indexes and single stocks, with more than S$10 billion worth of trades since the launch, SGX said.

“Investors have come to recognise the benefits of using DLCs to capitalise on short-term price movements and market trends. As interest in listed structured products grows in Asia, we will continue to work with issuers to offer investors a wider suite of investment options,” Michael Syn, head of equities at SGX, said in the statement. “With DLCs linked to regional indices gaining popularity, we are also seeing interest from issuers to launch DLCs with U.S. indices as the underlying.”

Vassili Reperant, head of public distribution for APAC at UBS, added: “This is another important milestone for our retail structured product business in Asia, following the launch of our warrant business in 2008. The ability to issue DLCs in Singapore will allow us to offer even more structured product choices to investors, and better match their needs.”