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.
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.
Base Listing Document
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.
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.
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.
The change in closing price on one trading day to the closing price on the following trading day.
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.
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
The annualised costs of funding, referencing a publically published interbank offered rate plus spread.
In respect of each Certificate, shall be an amount calculated as disclosed in the SLD of the relevant Daily Leverage Certificate.
The Stock Exchange of Hong Kong Limited
Hang Seng China Enterprises Index
Hang Seng Index
The closing level of the relevant leverage strategy, leverage inverse strategy or leveraged index (as applicable) on the Launch Date.
Intrinsic Close is the value computed using the valuation formula of the Certificates stated on the relevant supplemental listing documents at market close.
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.
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.
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.
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.
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).
The transaction costs (if applicable), computed as a function of leverage and daily performance of the Underlying Asset.
The Singapore Exchange Securities Trading Limited
MSCI Singapore Free Index
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".
Supplemental Listing Document