Shown above is the head office of Mirae Asset Securities. The business bellwether has become the first South Korean brokerage house to gain the trading membership of Singapore’s SGX. Photo courtesy of Mirae Asset Securities

10 DLCs offered with leveraged return of up to 3 times in Singapore

Mirae Asset Securities, South Korea’s leading brokerage house, noted on May 10 that SGX Securities of Singapore had accepted the firm as its new daily leverage certificates (DLC) issuer.

SGX is a Singapore-headquartered exchange conglomerate, which operates a variety of markets like equity, currency, fixed-income, and commodity.

As a result, Mirae Asset Securities has listed 10 new DLCs composed of five pairs of long and short dollar-denominated ones tracking such indexes as Nasdaq 100 and S&P 500.

They are the first set of DLCs listed on SGX to be offered in dollars. Mirae Asset Securities has also become the first South Korean outfit to achieve the feat.

DLCs refer to high-risk financial products, which give investors a leveraged return based on the daily performance of underlying assets or indices.

Mirae Asset’s products on SGX offer a leveraged return of up to three times. In 2017, SGX was the first in Asia to offer DLCs for trading.

“As a global financial group, Mirae Asset strives to be a permanent innovator in identifying opportunities and delivering innovative investment solutions to investors. Mirae Asset Securities Hong Kong CEO Rhee Jung-ho said.

“Our new DLC listing is a part of this strategy to diversify access to new solutions and platforms for our clients. We believe DLCs can provide investors with a convenient and capital efficient way of investing in equity markets globally. We are thrilled to be launching new tickers as the first step in this exciting market.”

SGX Group Senior Managing Director Michael Syn welcomed the Seoul-based securities company.

“In an increasingly volatile market environment, investors have veered towards structured products such as DLCs to diversify their portfolios and achieve higher yields,” he said.

“We are delighted to welcome Mirae Asset Securities as our newest DLC issuer as they continue to build on their strengths to better serve market participants.”

The share price of Mirae Asset Securities went up 0.72 percent on the South Korean stock exchange on May 10.

The publisher studied Korean history in Seoul and management of business administration in the United Kingdom. He has 20-year experiences in the media business. Kim can be reached at voc200@gmail.com or 82-2-6956-6698.