Singapore Exchange Continues to Grab Market Share in the Indian Rupee

When the CME and ICE announced that they were launching trading in Indian rupee futures at the end of 2013, the two exchanges were viewed as potential competitors to the strong activity in the currency being traded at the Dubai Gold and Commodity Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term (DGCX). Despite the arrival of the US competitors, activity of Indian rupee trading at the DGCX has continued to be strong, with month volumes around $30 billion. That figure contrasts to the CME, where the rupee accounts for around $1 billion in monthly volumes.

Rather than a competitor for the DGCX arriving from the West, it is in fact occurring from the East. Reporting a record in Indian rupee trading, the Singapore Exchange (SGX) has announced that during June, $9 billion of contracts were traded. In total, 286,959 USD/INR contracts were traded, a 26 times increase from the same period in 2014.

According to the SGX, the rupee has become attractive to investors during 2015 due to its resilience against the US dollar, of which it has only declined 0.94% against the dollar for the year. This decline outperforms many other Asian currencies such as the Singapore dollar and Malaysian ringgit.

Looking ahead, SGX expects trading in the USD/INR to continue to be active as they stated today, “With the Federal Reserve expected to hike interest rates in September, Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders Read this Term is likely to remain high going forward. The SGX INR/USD futures is one tool which offshore investors can use to manage currency risks associated with their exposure to the Indian market."