Markets volatility pushes SGX derivatives volumes up

The recent market turmoil affecting Greece and the Euro has helped Singapore's 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 see a rise in trade volumes fore commodities; transactions were up 6%.

Singapore Exchange (SGX) Asias second largest exchange said derivatives, commodities and clearing activity rose in November from a year earlier while securities trading fell.

Securities

Turnover fell 37% year on year to $25.4 billion as global uncertainties lingered. Securities daily average value was $1.2 billion, down 40% from a year earlier.

ETF turnover fell 52% to $532 million but structured warrants trading rose 57% to $931 million.

Derivatives

Total volume increased 7% year on year to 5.8 million contracts; derivatives daily average volume was 281,038 contracts, up 6%.

MSCI Taiwan Index Futures volume was 33% higher from a year earlier at 1.6 million contracts. MSCI Singapore futures volume was 26% up at 395,618 contracts. China A50 futures trading increased 81% year on year to 369,041 contracts.

Commodities and Clearing

Trading of agricultural commodity futures increased 54% year on year to 30,140 contracts primarily due to growing interest in the SICOM rubber contracts.

Volume of OTC commodity contracts cleared rose 67% from a year earlier to 19,800 contracts; 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 totalled 12,851 contracts, almost five times the volume of a year earlier.

Clearing of OTC Interest Rate Swaps continued to grow with a notional $4.5 billion cleared in November, bringing the cumulative amount cleared since launch to $184.5 billion notional.

The SGX has been trying to maintain its position as the most advanced and dynamic exchange in Asia, with a strong regulatory environment and free trade rules as compared to China or Malaysia. Singapore is the ideal location for Asian firms to list and trade.

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