31st March 2022 (Thursday)
[Click here for DLC product list]
Market Commentary
S&P500 DLCs March Performance

Since the launch of S&P 500 Index DLCs on 4 March, the 5x Long DLCs (CYAW & CUEW) have returned +30% as of 30 March, in line with the S&P 500 return of +6% in the same period. Correspondingly, the 5x Short DLCs (CZEW & CXBW) have declined by -32% in the same period.  

The rally on the S&P 500 Index started after the Fed's March FOMC on15-16 March. From 15 March to 30 March, the index rallied sharply by 8% which translated into a +43% return on the 5x Long DLCs and a -35% return on the 5x Short DLCs. Due to a strong trend on the index, the compounding effect of the DLCs resulted in a more than 5 times gain for the Long DLCs and a less than 5 times loss for the Short DLCs. 

Note the S&P 500 DLCs are only traded during SGX market hours from 9.00am to 5.00pm when the US market is closed, hence the DLCs intra-day price movements will be closely linked to the performance of the e-mini S&P 500 futures which are traded during Asian hours. For more information, please visit the US DLC page here.
CYAW
S&P 5xLongSG250228A
SPX 5x Long
Last Price1
1.950 +0.003
(+0.15%)
Last Update: 30/03/2022 17:28
 
CZEW
S&P 5xShortSG250228A
SPX 5x Short
Last Price1
1.080 +0.04
(+3.85%)
Last Update: 30/03/2022 17:28
Last Price1: The DLC price displayed is based on the 'bid price' instead of the 'traded price'. This is to provide a more accurate representation of the DLC value at each particular point in time and a more accurate reflection of DLC price changes. DLCs do not trade as frequently as shares and sometimes may not record a trade for a long period of time though the bid/offer prices quoted by the Designated Market Maker may continue to move, therefore using the bid price is usually the best indicator of a DLC value.
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Newly Launched HK Index and Single Stock DLCs

Listing Date 31 March 2022
SGX Stock Code DLC Name Issue Price (SGD)
DOLW Geely 5xLongSG230329 0.80
DTZW JD 5xLongSG230329 1.20
DKCW Alibaba 5xLongSG230329 1.20
DWHW Xiaomi 5xLongSG230329 0.80
DVJW Sunny 5xLongSG230329 1.20
DLEW Baidu 5xLongSG230329 1.20
DULW NetEase 5xLongSG230329 1.20
DNHW BYDElec 5xLongSG230329 1.20
DMJW Bilibili 5xLongSG230329 1.20
CVDW HSI 7xLongSG240327 1.50
CUFW HSCEI 7xLongSG240327 1.50
CWGW HSTECH 5xShortSG240327 1.50

Listing Date 4 April 2022
SGX Stock Code DLC Name Issue Price (SGD)
DDDW Kuaisho 5xLongSG230330 1.20
DJEW Meituan 5xLongSG230330 1.20
DGGW Tencent 5xLongSG230330 1.20
DAJW Alibaba 5xShortSG230330 1.20
DBJW Baidu 5xShortSG230330 1.20
DCEW JD 5xShortSG230330 1.20
DECW Kuaisho 5xShortSG230330 1.20
DICW Meituan 5xShortSG230330 1.20
DHAW NetEase 5xShortSG230330 1.20
DFDW Tencent 5xShortSG230330 1.20

View the newly launched DLCs here
New Features
New Tools & Insights on the DLC Website

•    Create a Watchlist of your favourite DLCs
•    Gain Market Insights with fund flows for DLCs & Underlying Stocks
•    Compare DLCs easily to choose the best one for your target exposure
•    Identify trends with Charting Tools

 
Latest Events
Upcoming Webinar Series

 Hear from these renowed speakers on how to make the most out of DLCs in the sessions scheduled below. 

Date Time   Topic (Registration Link) Speaker
04/04/2022 12.00-12.45pm [InvestingNote] Moving Markets Series  Guest Speakers
28/04/2022 7.00-10.00pm

[MasterClass] A Systematic Approach to Trade Strong Momentum Stocks

 Binni Ong
04/05/2022 7.00-8.00pm [SGX Trading Hour] Trade Idea Generation for Singapore & Hong Kong Stocks Binni Ong
This newsletter may contain links to other websites which are not operated by Société Générale, Singapore Branch (“SG Singapore”). We have no control over the information referred to on these sites or the products or services on them, and therefore makes no representations and accepts no responsibility regarding the accuracy or suitability of the information, services or products described on them. You are advised to make your own enquiries in relation to third parties described or linked on this internet site. Inclusion of a link to a third party site should not be construed as an endorsement of such third party site by us or that party's endorsement of this Website.
Education
What is Compounding Effect?

DLCs are designed around the Daily Performance of their Underlying Asset. They apply a fixed level of leverage which makes it easier to determine price movements during a single Trading Day. While it does not mean that DLCs are only for day trading purpose, investors should note that if they hold DLCs for longer than one day, the return could outperform or underperform the leverage factor embedded within the product.

This is because the exposure of a DLC is reset at the end of each Trading Day back to its fixed leverage factor. When markets open the next day, the performances of the Underlying Asset and the DLC will be measured from the closing levels recorded the previous Trading Day. What this means, in practice, is the performance each day is locked in, and any subsequent returns are based on what was achieved the day before. This is a process referred to as 'compounding'.

The compounding effect can positively enhance returns in trending markets (upward or downward) whilst negatively impacting returns when the markets are more volatile or trend sideways for long periods. The effect of this compounding is further amplified as daily returns are leveraged. See illustrations on the Compounding Effect here.
DLC Funds Flow Chart
Each DLC’s funds flow for the previous trading day on 30/03/2022 is calculated by change in the DLC’s outstanding units for the period from 29/03/2022 to 30/03/2022 (positive if there is increase in outstanding units, i.e. investors net bought DLCs from Designated Market Makers) multiplied by the last intrinsic close of such DLCs. The DLC funds flow is the aggregate of the funds flow of DLCs referencing the same Underlying Asset and same direction.
 
Top Gainers / Losers
Code Name Bid Change1
(%)
DZKW GWMotor 5xShortSG221223 +0.743
(+38.36%)
DGXW BYDElec 5xShortSG221013 +0.143
(+35.98%)
DGPW BYDElec 5xShortSG220608 +1.125
(+33.74%)
DVUW COSCO 5xShortSG221223 +0.034
(+21.91%)
DSHW Geely 5xShortSG221215 +0.29
(+18.41%)
Code Name Bid Change1
(%)
DSFW WuxiBio 5xLongSG230215 -0.122
(-39.78%)
DDXW BYDElec 5xLongSG221013 -0.005
(-31.97%)
DNHW BYDElec 5xLongSG230329 -0.37
(-30.82%)
DBDW Baidu 5xLongSG220511 -0.003
(-21.48%)
DLEW Baidu 5xLongSG230329 -0.25
(-20.83%)
Bid Change (%)1: Current Bid Price / Intrinsic Closing Value - 1
Intinsic Closing Value: Last updated on 30/03/2022
  READ MORE  
Top 10 traded DLCs
Code Name Underlying1
Chg (%)		 Bid Change2
(%)		 Bid Price Value traded
CZMW HSI 7xShortSG240125 -1.25% +0.113
(+11.22%)		 1.120 6M
CVDW HSI 7xLongSG240327 -1.25% -0.09
(-6.00%)		 1.410 4M
CUUW HSI 7xLongSG231215 -1.25% -0.011
(-7.57%)		 0.134 2M
CUFW HSCEI 7xLongSG240327 -1.34% -0.105
(-7.00%)		 1.395 2M
CWAW HSI 5xLongSG230420 -1.25% -0.01
(-5.12%)		 0.185 2M
CUKW HSCEI 5xShortSG230420 -1.34% +0.014
(+8.20%)		 0.185 2M
DVIW Alibaba 5xLongSG231214 -2.19% -0.013
(-10.08%)		 0.116 2M
CXQW HSI 5xShortSG230420 -1.25% +0.009
(+7.22%)		 0.134 2M
DLCW BYD 5xLongSG230202 -1.34% -0.015
(-4.48%)		 0.320 1M
DMHW Meituan 5xLongSG230306 -3.75% -0.025
(-17.42%)		 0.119 1M
Underlying Chg (%)1: Data calculated based on the percentage change in underlying asset price between 30/03/2022 and 31/03/2022 14:00.
Bid Change (%)2: Data calculated based on the percentage change in last intrinsic closing value on 30/03/2022 and last bid price on 31/03/2022 13:59.
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