SGX welcomes listing of first homegrown leveraged and inverse products

Singapore Exchange (SGX) today welcomed the listing of the Phillip MSCI Singapore Daily (2X) Leveraged and Phillip MSCI Singapore Daily (-1x) Inverse Products (L&I products), providing institutional and retail investors with capital-efficient solutions to leverage and hedge exposures in the Singapore market.

The L&I products are Singapore’s first locally domiciled leveraged and inverse products to be listed on SGX.

Managed by Phillip Capital Management, the leveraged and inverse products provide exposure that is two times and one time inverse, respectively, of the daily return of the underlying MSCI Singapore Index. This is achieved via investing in and replicating the performance of the SGX MSCI Singapore Free Index Futures (SiMSCI), one of the most widely traded contracts on SGX.

Michael Syn, Head of Equities at 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. 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.”

“With the Phillip L&I Products, investors and traders can now take up positions depending on their near-term view of the market. Traders who are bullish can ride on the Leveraged product, while bearish investors can use the Inverse product to take advantage of market weakness or hedge their portfolio effectively,” said Linus Lim, Director and Chief Executive Officer of Phillip Capital Management.

Mr. Lim added, “The products also take away the monitoring and handling of margins for traders, allowing them to focus their energy on implementing their trading strategies. Ultimately, this would benefit them by freeing up both time and capital.”

Published on December 1, 2021

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