The Singapore Exchange (SGX) continues to serve as one of the premier exchanges in Asia for FX futures trading as the total volume of FX futures contracts grew by 74% year on year (YoY). The total number of contracts was 759,983 contracts in July and the open interest in these contracts was also up 15% YoY to 60,105 contracts.
This not only compares favourably to the numbers from the same month last year but also compares very well against the numbers from June 2017, with both the open interest and number of contracts being higher.
The average daily trading volume also showed an increase with the number of FX contracts being traded daily coming in at 36,190 contracts which is again a 74% increase YoY.
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SGX also said that one of the main contributors to this increase has been the volumes generated by INR/USD futures which has increased ever since the tax and demonetisation reforms began to take effect. This has increased investor confidence in the Indian economy and has helped to increase the flow of funds into the India. This has helped the Indian rupee to stabilise and also appreciate against the dollar.
Though the volatility of INR/USD has become low, SGX said that there has been a 10% month on month increase in INR/USD futures contracts with 596,763 contracts worth $18.5 billion being traded in July.
Rise in Trading Volumes of Other Pairs
The SGX also said that it had managed to maintain its position as the main exchange for offshore trading of renminbi as the monthly trading volumes and open interest in USD/CNH futures grew by 416% and 96% respectively. Also, though the global trading volumes in these contracts fell by 12% MoM, they fell only by 7.7% at SGX.
Other FX contracts like MYR/USD and SGD/USD also saw increased trading activity and this continues the show of SGX through the course of this year where it has seen volumes and trading activity rise YoY almost every month, indicating its growth and stability.