SGX Reports Record FX Trading Activity in September

SGX Reports Record FX Trading Activity in September

Time Stamp: October 13, 2023 10:07 AM
Source Node: 2935804

Singapore Exchange (SGX) has released its market
statistics for September, highlighting a record trading activity in commodities
and forex. Besides that, SGX announced the launch of Singapore’s
largest equity ETF focusing on climate action.

SGX’s FX market recorded a substantial growth
in September. Its total FX futures trading volume increased by 20% year-on-year
(YoY) to 4.1 million contracts. According to the company, the concerns about
prolonged high interest rates in the US spurred the increase in trading activity. The SGX
USD/CNH Futures contract surged by 77% YoY in volume to 2.8 million contracts, with
a record notional average daily volume of almost USD $15 billion.

Comparatively, SGX’s total FX futures trading volume
surged by 26% month-on-month (MoM) to 4.2 million contracts in August. The
trading volume of SGX USD/CNH Futures was also recorded at 2.8 million in
August. Additionally, SGX INR/USD Futures saw an increase of 11% MoM to 1.2 million contracts.

SGX Equity Derivatives experienced increased demand,
particularly in the GIFT Nifty 50 Index Futures, which jumped 9% MoM in
September. On the sustainable finance front, SGX FTSE Blossom Japan Index
Futures attracted global institutions with a record month-end open interest of
USD $116 million.

Commodity derivatives trading reached unprecedented
levels in September, with an increase of 77% YoY to 5.4 million
contracts. This surge encompasses various products such as iron ore, freight
derivatives, petrochemicals, and rubber futures. Iron ore derivatives saw a
jump of 85% YoY, driven by China’s stimulus measures and expanding steel
production.

In August, the commodity derivatives trading volume
increased by 52% YoY to 5 million contracts. Notable growth was observed in
iron ore, rubber, and dairy derivatives, with benchmark iron ore volume
increasing by 54% YoY. SGX SICOM rubber futures saw an increase of 51% YoY,
while the dairy derivatives set a record with 78,504 lots due to heightened
volatility .

SGX: Screen Trading on the Rise

A notable trend is the growing adoption of screen
trading among traders, contributing to almost 60% of the total
futures activity. Forward Freight Agreement volume increased by 15% YoY.

Singapore‘s securities market saw a decline in daily
average value and market turnover value in September. The benchmark Straits
Times Index experienced a drop of 0.5% MoM. However, structured warrants and Daily Leverage Certificates market turnover value increased by 4% between July and September.

In the fixed income sector, SGX Fixed Income surged
by 28% MoM in the amount issued from 39 new bond listings in September.
Highlights included multi-billion-dollar offerings by financial institutions
like The Export-Import Bank of Korea, Sumitomo Mitsui Trust Bank Ltd., Nippon
Life Insurance Co., and Bayfront Infrastructure.

Singapore Exchange (SGX) has released its market
statistics for September, highlighting a record trading activity in commodities
and forex. Besides that, SGX announced the launch of Singapore’s
largest equity ETF focusing on climate action.

SGX’s FX market recorded a substantial growth
in September. Its total FX futures trading volume increased by 20% year-on-year
(YoY) to 4.1 million contracts. According to the company, the concerns about
prolonged high interest rates in the US spurred the increase in trading activity. The SGX
USD/CNH Futures contract surged by 77% YoY in volume to 2.8 million contracts, with
a record notional average daily volume of almost USD $15 billion.

Comparatively, SGX’s total FX futures trading volume
surged by 26% month-on-month (MoM) to 4.2 million contracts in August. The
trading volume of SGX USD/CNH Futures was also recorded at 2.8 million in
August. Additionally, SGX INR/USD Futures saw an increase of 11% MoM to 1.2 million contracts.

SGX Equity Derivatives experienced increased demand,
particularly in the GIFT Nifty 50 Index Futures, which jumped 9% MoM in
September. On the sustainable finance front, SGX FTSE Blossom Japan Index
Futures attracted global institutions with a record month-end open interest of
USD $116 million.

Commodity derivatives trading reached unprecedented
levels in September, with an increase of 77% YoY to 5.4 million
contracts. This surge encompasses various products such as iron ore, freight
derivatives, petrochemicals, and rubber futures. Iron ore derivatives saw a
jump of 85% YoY, driven by China’s stimulus measures and expanding steel
production.

In August, the commodity derivatives trading volume
increased by 52% YoY to 5 million contracts. Notable growth was observed in
iron ore, rubber, and dairy derivatives, with benchmark iron ore volume
increasing by 54% YoY. SGX SICOM rubber futures saw an increase of 51% YoY,
while the dairy derivatives set a record with 78,504 lots due to heightened
volatility .

SGX: Screen Trading on the Rise

A notable trend is the growing adoption of screen
trading among traders, contributing to almost 60% of the total
futures activity. Forward Freight Agreement volume increased by 15% YoY.

Singapore‘s securities market saw a decline in daily
average value and market turnover value in September. The benchmark Straits
Times Index experienced a drop of 0.5% MoM. However, structured warrants and Daily Leverage Certificates market turnover value increased by 4% between July and September.

In the fixed income sector, SGX Fixed Income surged
by 28% MoM in the amount issued from 39 new bond listings in September.
Highlights included multi-billion-dollar offerings by financial institutions
like The Export-Import Bank of Korea, Sumitomo Mitsui Trust Bank Ltd., Nippon
Life Insurance Co., and Bayfront Infrastructure.

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