ADRs (new) American Depository Receipts (ADRs) are created when a broker or investor purchases a non-US company’s shares in its local market, delivers the shares to the depositary bank’s local custodian, and instructs the depositary bank to issue ADRs to the broker or investor in the US. These ADRs can then be traded freely, just like any other security, on a US national stock exchange or over-the-counter market. With the launch of ADRs on SGX, these ADRs can now be traded freely on SGX, just like any SGX Mainboard security. Brokers and investors can also instruct the depositary bank to issue ADRs into Singapore.
ETFs
Exchange-traded funds (ETFs) are index funds that offer investors instant access to a diversified portfolio of securities representing the index but at a low cost or entry minimum. The types of indices ETFs can track and trade on The Singapore Exchange include a particular stock market, asset class, commodity or sector. With ETFs, investors enjoy greater transparency and the ability to enjoy exposure and diversification at relatively low transaction costs and without the need to buy into single stocks.
For more information on SGX-listed ETFs, click here
For more information on HKEX-listed ETFs, click here
For more information on NYSE-listed ETFs, click here
Extended Settlement (“ES”) Contracts Newly launched on 20 February 2009, Extended Settlement (ES) Contracts are now available for trading at OCBC Securities! A new product class tradable on the SGX Securities Trading (SGX-ST) market, it allows investors to buy or sell an underlying stock listed on SGX at the transacted price on the day of the purchase or sale, for final settlement at a specified future date.
Investors will have to put up an initial margin to trade ES contracts, which will be marked to market. ES contracts provide investors with an exchange-listed and -traded alternative to unregulated over-the-counter trades. Trading of ES contracts is also available online. For more details on trading ES with OCBC Securities, please view the following :
Warrants
Warrants are another alternative investment available that allow investors to gain exposure to the underlying security without actually owning it. Investors who have a view on the movement of the underlying security can buy a warrant, which cost a fraction of the price of the underlying share. Hence, warrants offer leverage by limiting the cost to price of warrant paid while offering unlimited directional exposure to the underlying share. What’s more, warrants can also be used as a hedging tool, or to extract cash from equity exposure.
DISCLAIMER
Trading in securities can be very risky, and the customer may lose all or more than the amount invested or deposited. This is particularly so when the customer needs to i) make his or her own trading decisions and ii) ensure each trade is specifically suitable for him or her – the only basis for any trading through or with OCBC Securities Private Limited (“OSPL”). The information provided herein is intended for general circulation/discussion purposes only and may not be published or circulated (in whole/in part) without our written consent. It does not take into account the specific investment objectives, financial situation or particular needs (collectively “Objectives”) of any particular person. Please seek advice from an independent financial adviser regarding the suitability of any trade or investment product taking into account your Objectives before making a commitment to trade or purchase the investment product. If you choose not to seek independent financial advice, please consider whether the trade or product in question is suitable for you. This does not constitute an offer/solicitation to buy/sell/subscribe for any investment products or to participate in any particular trading or investment strategy. Any proposed transaction is subject to the final expression of the terms in the definitive agreement/confirmation. No representation or warranty whatsoever (including without limitation any representation or warranty as to accuracy, usefulness, adequacy, timeliness or completeness) in respect of any information (including without limitation any statement, figures, opinion, view or estimate) provided herein is given by OSPL and it should not be relied upon as such. OSPL does not undertake an obligation to update the information or to correct any inaccuracy that may become apparent at a later time. All information presented is subject to change without notice. OSPL shall not be responsible or liable for any loss or damage whatsoever arising directly/indirectly howsoever in connection with or as a result of any person acting on any information provided herein.
