FX Futures Off to Flying Start at SGX - Overall Volumes in the Green

Singapore's largest financial trading exchange, the Singapore Exchange (SGX), has seen good trading performance across all asset classes in November. During the month, the bourse launched currency futures in the Indian rupee and Chinese yuan as well as other emerging market FX pairs, which were taken up by participants. Volumes across the major asset classes including equities and derivatives, saw sharp increases from figures reported a year earlier.

The new futures contracts were launched on the 11th of November and data from the exchange shows over five thousand contracts exchanged hands at SGX.

Operating Metrics

Derivatives

• Derivatives volume rose 23% year-on-year to 8.9 million contracts.
• Open interest at end-November rose 54% from a year earlier to a record 4.0 million contracts.
• China A50 futures volume rose 92% to 2.3 million contracts, MSCI Taiwan futures trading declined 6% to 1.5 million contracts, while Nikkei 225 futures trading increased 14% to 2.4 million contracts. The MSCI Indonesia futures volume more than doubled to 30,708 contracts.
• SGX introduced Asian foreign exchange futures for Asian currencies from 11th of November, trading a total of 5,552 contracts for the month.

Securities

• Value of securities traded was $19.5 billion, down 30% from $27.8 billion last year; daily average value of securities traded declined to $927 million from $1.3 billion.
• A total of 57 bonds raising $11.3 billion were listed. The biggest debt listed was Singapore Housing Development Board’s $1.5 billion fixed rate notes due 2017.
• There were 3 new IPOs in November raising $2.7 billion.

OTC Clearing

• A total $4.1 billion notional of new OTC financial derivatives transactions were cleared, up 52% year-on-year.
• Volume of OTC commodities cleared increased 35% year-on-year to 38,033 contracts.
• Volume of iron ore Swaps Swaps Swaps can be defined as a derivate contact composed of two parties that exchange to cash flow between two separate financial instruments.They are generally divided into two categories. This includes contingent claims (options) and forward claims, where forward contracts, swaps, and exchange-traded funds (ETFs) are exchanged. Commodity price, equity price, interest rate, and foreign exchange rate are common variables used as one of the cash flows in swaps upon initiation. Different Types of Swaps Swaps can be defined as a derivate contact composed of two parties that exchange to cash flow between two separate financial instruments.They are generally divided into two categories. This includes contingent claims (options) and forward claims, where forward contracts, swaps, and exchange-traded funds (ETFs) are exchanged. Commodity price, equity price, interest rate, and foreign exchange rate are common variables used as one of the cash flows in swaps upon initiation. Different Types of Swaps Read this Term cleared increased 75% from a year earlier to 36,611 contracts.
• SICOM rubber futures volume increased 58% from a year earlier to 23,732 contracts.

Singapore’s multi asset exchange, SGX, has been battling with neighbouring exchanges to be the preferred destination for Indian and Chinese instruments. The take up of FX futures signifies the importance of Risk Management Risk Management One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, Read this Term products for corporate in these nations.