Glossary
A

Air Bag Mechanism

The "Air Bag Mechanism" refers to the mechanism built in the relevant leverage strategy, leverage inverse strategy or leveraged index (as applicable) and which is designed to reduce the leverage strategy/leverage inverse strategy/leveraged index exposure to the Underlying Asset during extreme market conditions. If the Underlying Asset falls or rises (as applicable) by more than the relevant air bag trigger level during the trading day, the Air Bag Mechanism is triggered and the leverage strategy/leverage inverse strategy/leveraged index is adjusted intraday. The Air Bag Mechanism reduces the impact on the leverage strategy/leverage inverse strategy/leveraged index if the Underlying Asset falls or rises (as applicable) further, but will also maintain a reduced exposure to the Underlying Asset in the event the Underlying Asset starts to rise or fall (as applicable) after the Air Bag Mechanism is triggered, thereby reducing its ability to recoup losses. Trading of Daily Leverage Certificates is suspended for at least 30 minutes after the Air Bag is triggered. The leverage strategy/leverage inverse strategy/leveraged index is floored at 0 and the Daily Leverage Certificates cannot be valued below zero.

B

Bid/Ask Spread

There is always a spread between the buy (Ask) and sell (Bid) price for Daily Leverage Certificates. As with shares, investors always buy at the higher price (Ask price) and sell at the lower price (Bid price). Under normal market conditions, the DMM will provide competitive buy and sell quotes for the Daily Leverage Certificates continuously during the trading hours of the SGX-ST.

BLD

Base Listing Document

C

Counterparty Risk

Daily Leverage Certificates are issued by SG Issuer and guaranteed by Societe Generale. Any failure of the issuer or guarantor to perform obligations when due, may result in the loss of all or part of an investment.

Currency Risk

There may be exchange rate risks as the Daily Leverage Certificates will be issued and traded in Singapore dollars while the underlying may be traded in a different currency. The value of the Daily Leverage Certificates may therefore be affected by, amongst other factors, the relative exchange rates of the Singapore dollar and the currencies of the underlying.

D

Daily Long

A product which is designed for investors looking to gain a return of three or five times the positive compounded Daily Performance of the Underlying Asset.

Daily Performance

The change in closing price on one trading day to the closing price on the following trading day.

Daily Short

A product which is designed for investors looking to gain a return of three or five times the negative compounded Daily Performance of the Underlying Asset.

Designated Market Maker (DMM)

The DMM will provide competitive buy and sell quotes for the Daily Leverage Certificates continuously during the trading hours of the SGX-ST on the basis disclosed in the SLD of the relevant Daily Leverage Certificate

F

Funding Cost

The annualised costs of funding, referencing a publically published interbank offered rate plus spread.

G

Gap Premium

It is a hedging cost against extreme market movements overnight.

H

Hedging Fees Factor

In respect of each Certificate, shall be an amount calculated as disclosed in the SLD of the relevant Daily Leverage Certificate.

HKEX

The Stock Exchange of Hong Kong Limited

HSCEI

Hang Seng China Enterprises Index

HSI

Hang Seng Index

I

Initial Reference Level

The closing level of the relevant leverage strategy, leverage inverse strategy or leveraged index (as applicable) on the Launch Date.

Intrinsic Close

Intrinsic Close is the value computed using the valuation formula of the Certificates stated on the relevant supplemental listing documents at market close.

L

Leverage

The amount by which the Daily Leverage Certificates' value moves in relation to a 1% change in the value of the Underlying Asset. For example, 5 times leverage means that a 1% move in the Underlying Asset would result in a 5% move in the price of the product before costs & fees.

Leveraged Performance

The leverage performance means that movements in the Underlying Asset are amplified. Instead of moving in line with your chosen Underlying Asset, Daily Leverage Certificates will leverage your exposure by 3 or 5 times, and multiply any gain or loss by that amount.

Leverage Risk

If the investment results in a loss, any such losses will be increased by multiple times depending on the particular leverage. Consequently the investor could lose more than they would if they invested directly in the underlying asset.

Liquidity Risk

The secondary market may be illiquid. The issuer acting through its designated market-maker may be the only market participant buying and selling the Daily Leverage Certificates. Therefore, the secondary market for the Daily Leverage Certificates may be limited and the investor may not be able to realise the value of the Daily Leverage Certificates. The bid-ask spread increases with illiquidity.

M

Maturity

The date that the Daily Leverage Certificates will expire. At expiry investors will automatically receive a payout based on the final value of the relevant leverage strategy, leverage inverse strategy or leveraged index (as applicable).

R

Rebalancing Cost

The transaction costs (if applicable), computed as a function of leverage and daily performance of the Underlying Asset.

S

SGX-ST

The Singapore Exchange Securities Trading Limited

SIMSCI

MSCI Singapore Free Index

SIP

SIPs refer to Specified Investment Products as defined under MAS Notice on the Sale of Investment Products (SFA 04-N12). SIPs are derivatives, or products which may contain derivatives. They have complex features and risks which can expose investors to more factors which can cause a loss. The returns or losses on a product may be determined by complicated formulas that may not be easy to understand. For more information on SIPs, please refer to the MoneySENSE guide on "Investing in Specified Investment Products".
(http://www.moneysense.gov.sg/understanding-financial-products/investments/guides-and-articles/investing-in-specified-investment-products.aspx)

SLD

Supplemental Listing Document

T

Turnover

Total value of Daily Leverage Certificates traded during a specific time period.

U

Underlying Asset

The Index that the Daily Leverage Certificates provides leveraged exposure to.