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					                               AmFraser Securities Pte. Ltd.
                       Introduction to Extended Settlement Contracts
                                               (As of 12 Jan 09)

      A forward contract traded on the SGX Securities Market with 35 day cycle, and with 1 week
 overlap between monthly contracts
- Allows you to long and short
- Gives you leverage of 5 to 20 times with a margin of just 5% to 20% of contract value
- Settlement is 3rd day after last trading day (LTD*)
- Physical settlement – meaning that delivery is satisfied by taking delivery into (for long) or delivered
  from (for short), your trading accounts**
- Trade through your securities broker online or offline
Example: Trading name - SIA.ES.0903 SIA ES, Contract year 2009, Month March




                                  Benefits of Extended Settlement
1. Capital efficient compared to margin financing
     • When investors trade ES, they are required to place an initial deposit or margin instead of full
       value
     • The smaller amount of capital will allow investors to gain exposure to a larger amount of
       securities and it offers 5 to 20 times leverage
2. Central Counter-party
     • The settlement counterparty is CDP
     • Exchange listed – greater transparency
3. Participate in Bull & Bear markets
      • For bearish investors, ES will allow them to gain from downward movements of stock prices by
        “short” selling
4. Physical Delivery
     • With physical settlement, investors are able to receive delivery of the underlying without
       incurring additional costs in purchasing the underlying shares in event of cash settlement
5. Longer view of the market
     • Investors have 35 days to offset their positions. In comparison to the ready market, this will
       allow investors to take a longer view of the market.
Contract Specifications




 Comparing Products
                AmFraser Securities ES Education Seminars
We will hold seminars for clients to promote this product,
 –       AmFraser Conference Room
          •    There will be one held on 16 Feb evening (6.30pm-7.30pm).

 –      SGX Auditorium & Training Room (10 March Evening) (More information to given in due
        course)


                          For more information on ES
Please speak to your AmFraser Trading Representative or

                               AmFraser Hotline (+65 6236 2688)

Or access the following websites:

SGX Extended Settlement HomePage:
http://www.sgx.com/psv/es/index.shtml

SGX Extended Settlement Investor Guide
http://www.sgx.com/psv/es/documents/SGXInvestorGuide.pdf

				
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posted:7/1/2011
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