American Depositary Receipts (ADRs) are securities registered with the U.S. Securities and Exchange Commission (SEC) and represents ownership of underlying company shares. ADRs that are quoted for trading on SGX GlobalQuote are not regulated by SGX, but are listed and regulated in the U.S. Unlike GDRs, there is no listing or fund raising on SGX. It allows individual investors to trade foreign companies through a legitimate security during Singapore trading hours.

Business Trusts offer investors a new way to invest in cash-generating assets.

Business Trusts are business enterprises set up as trusts, instead of companies. They are hybrid structures with elements of both companies and trusts.

A certificate is an investment product issued by a third-party financial institution, offering investment opportunities based on different market themes and expectations.  An example is a discount certificate which allows an investor to buy into the performance of an underlying asset at a discount to its actual price in return for a cap on the maximum potential gain and may be used to enhance yield in a flat market. 

These warrants are issued by companies and they give you the right, but not the obligation, to subscribe for a given number of ordinary shares in the company at a pre-determined exercise or strike price within a specified time period. They are often provided as an added attraction to rights issues or loan stocks issued by the company to raise additional capital.

Funds traded on SGX are known as Exchange Traded Funds, or ETFs. These funds generally aim to track indices like STI, MSCI India etc. This means that by investing in ETFs, you are effectively investing in the price movements of the component stocks in the underlying indices.

ETNs are debt securities designed to provide investors access to the returns of market benchmarks such as commodities, currencies, and equities. This allows investors cost-efficient exposure to investments in previously expensive or difficult-to-reach market sectors or strategies.

An Extended Settlement (ES) contract is a contract between two parties, to buy or sell (a) a specific quantity (eg. 1000 shares) of (b) a specific underlying (eg. SIA) at (c) a specific price (eg. $19.70) for settlement at (d) a specific future date (eg. last business day of the month) when the contract matures or expires.

Fixed Income refers to securities that pay a specific interest rate, such as bonds and preference shares. Bonds are issued by governments or companies, while preference shares are issued by companies.

Global Depository Receipts (GDRs) are certificates representing an issuer’s underlying shares. The listing of GDRs on SGX is one of the manners through which an international company which is already listed on its home exchange can list on SGX and raise funds.

A Real Estate Investment Trust (“REIT”) raises capital to purchase primarily real estate assets, usually with a view to generating income for unit holders of the fund. It allows individual investors to access real property assets and share the benefits and risks of owning a portfolio of property assets which typically distribute income at regular intervals.

A stapled security is an arrangement under which different securities are quoted jointly, for example, shares issued by a company and units issued by a trust. The main feature of stapled securities is that the securities cannot be traded separately as the stapled securities are treated as one security and the combined entity will be traded under one trading name.

A share represents a part-ownership of a company. For example, if you buy 10,000 shares in a company that has issued one million shares, you own one percent of that company.

A structured warrant is a product issued by financial institutions, enabling investors to participate in the price performance of an underlying asset at a fraction of its price. Therefore, structured warrants enable investors to free up their capital while maintaining a similar level of exposure to the underlying asset or otherwise increase their exposure for the same investment outlay.

There are 2 types of warrants: calls and puts. Call warrants cater to bullish expectations as they allow investors to go “long” into the underlying asset. Conversely, put warrants enable investors to take bearish views or hedge against a fall in their stock positions

Unlike other leveraged instruments, investors are not subject to cash top-ups when the underlying moves adversely against his/her position. Thus, investors do not risk more than their initial amount paid for the warrants, a fraction of the underlying asset, while enjoying unlimited potential gains.

If you're a CDP securities account holder, you can participate as a lender in the SGX Securities Lending programme. Register as a Lending Participant now even if you do not have the eligible securities, or the requisite quantity. Once your shareholdings meet the eligibility criteria, we will lend your securities for you when there is demand.