- For the first time, USD quoted stock Daily Leverage Certificates (DLCs) are made available on the Singapore Exchange (SGX)
- UBS listed six new UBS Daily Leverage Certificates on the SGX over single stock underlying assets. The Long and Short DLCs offer 3 times the daily performance of underlying assets
- Underlying single stock assets include Tencent, Alibaba, BYD
Singapore, 20 June 2023 – UBS listed six new Daily Leverage Certificates (DLCs) on the Singapore Exchange (SGX) over single stock underlying assets. This is the first time that a USD quoted stock DLC is listed on the SGX. Trading is commencing on six long and short DLCs, which provide investors with three times the daily performance of the single stocks – namely Tencent, Alibaba and BYD.
“UBS continues to be at the frontier of offering new and innovative products for our clients. With the launch of the first-ever USD quoted single stock DLCs, UBS together with SGX, is able to provide an option with less currency fluctuations and appeal to investors who prefer USD-traded instruments,” noted Vassili Reperant, UBS Head of Public Distribution APAC.
DLCs are structured financial instruments that offer sophisticated investors a fixed daily leveraged exposure of up to seven times of the daily performance of an underlying asset (either market indices or single stocks). DLCs are also transparent instruments that allow investors to potentially benefit from both bullish and bearish exposure over an underlying asset. The exchange-traded leveraged financial instrument was first introduced in Europe, and has been introduced to Asia by the SGX.
“The markets have experienced a lot of volatility in recent months. We have however seen a turnaround in investor sentiments for Chinese stocks and this is an opportune time to launch 3x DLCs on the underlying single stocks to appeal to investors who prefer smaller leverage factor for less volatility.“ added Vassili.
At present, there are over 430 Live DLCs listed on the SGX, which is 29% more DLCs in the same period last year. UBS is the second largest issuer of DLCs on SGX1 , offering investors more options to hedge and capture investment opportunities in Asia.
To provide investors with a better understanding on the investment opportunities of DLCs, UBS has created an easy-to-read DLC 101, a series of short videos, information about the top 5 DLCs gainers and losers, as well as hotline details in its UBS DLC website: https://dlc.ubs.com/
UBS convenes the global ecosystem for investing, where people and ideas are connected and opportunities brought to life, and provides financial advice and solutions to wealthy, institutional and corporate clients worldwide, as well as to private clients in Switzerland. UBS offers investment solutions, products and impactful thought leadership, is the leading global wealth manager, provides large-scale and diversified asset management, focused investment banking capabilities, and personal and corporate banking services in Switzerland. The firm focuses on businesses that have a strong competitive position in their target markets, are capital efficient and have an attractive long-term structural growth or profitability outlook.
UBS is present in all major financial centers worldwide. It has offices in more than 50 regions and locations, with about 30% of its employees working in the Americas, 30% in Switzerland, 19% in the rest of Europe, the Middle East and Africa and 21% in Asia Pacific. UBS Group AG employs more than 72,000 people around the world. Its shares are listed on the SIX Swiss Exchange and the New York Stock Exchange (NYSE).