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Lion-OCBC Low Carbon ETF Tightens Liquidity Controls and Adds Slippage Mechanisms

Story Highlights
  • Lion-OCBC Low Carbon ETF will tighten liquidity risk controls from March 2026, capping daily redemptions and allowing deferred payments to manage large outflows fairly.
  • The fund will introduce price and FX slippage on primary market deals, with these costs borne by the ETF, to protect overall unitholder interests amid volatile trading conditions.
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An update from Lion-OCBC Securities Singapore Low Carbon ETF Units ( (SG:ESG) ) is now available.

Lion Global Investors, manager of the Lion-OCBC Securities Singapore Low Carbon ETF, will introduce new liquidity risk management measures effective 20 March 2026 to better handle large redemption orders and protect unitholders. These measures aim to ensure orderly asset realisation, avoid forced sales at unfavourable prices, and uphold fair treatment across investors by allowing deferral of payments, capping daily redemptions at 10% of units in issue, and using a substituted realisation price when large asset sales are needed.

The manager will also implement slippage mechanisms, including price and foreign-exchange slippage, for primary market creations and redemptions via participating dealers, though not for trades on SGX-ST. Slippage costs, driven by market volatility or low liquidity during execution, will be borne by the fund rather than dealers, signalling a tighter risk framework that may affect transaction dynamics but is intended to safeguard overall unitholder interests and fund stability.

More about Lion-OCBC Securities Singapore Low Carbon ETF Units

Lion-OCBC Securities Singapore Low Carbon ETF, managed by Lion Global Investors Limited, is an exchange-traded fund focused on Singapore-listed, low-carbon-related securities. The fund targets investors seeking exposure to companies with reduced carbon footprints, aligning with sustainability and climate-conscious investment trends in the local equity market.

Average Trading Volume: 247,588

For detailed information about ESG stock, go to TipRanks’ Stock Analysis page.

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