SGX Reports Surge in FX Futures Volume in February 2021
- The total foreign exchange (FX) futures trading volume jumped 7% to 2.3 million contracts in February.

Singapore Exchange (SGX) today reported the market statistic for the last month. The exchange saw a surge in FX futures trading volume during February 2021 as the total number of contracts reached 2.3 million, which is a 7% jump compared to January 2021.
According to the official announcement, the latest surge in FX volumes was led by INR/USD futures as the volume in the currency pair jumped 22% in February due to high market 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 can be successful in both low and high volatile environments, but the strategies employed are often different depending upon volatility. Why Too Much Volatility is a ProblemIn the FX space, lower volatile currency pairs offer less surprises, and are suited to position traders.High volatile pairs are attractive for many day traders, due to quick and strong movements, offering the potential for higher profits, although the risk associated with such volatile pairs are many. Overall, a look at previous volatility tells us how likely price will fluctuate in the future, although it has nothing to do with direction.All a trader can gather from this is the understanding that the probability of a volatile pair to increase or decrease an X amount in a Y period of time, is more than the probability of a non-volatile pair. Another important factor is, volatility can and does change over time, and there can be periods when even highly volatile instruments show signs of flatness, with price not really making headway in either direction. Too little volatility is just as problematic for markets as too much, we uncertainty in excess can create panic and problems of liquidity. This was evident during Black Swan events or other crisis that have historically roiled currency and equity markets. 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 can be successful in both low and high volatile environments, but the strategies employed are often different depending upon volatility. Why Too Much Volatility is a ProblemIn the FX space, lower volatile currency pairs offer less surprises, and are suited to position traders.High volatile pairs are attractive for many day traders, due to quick and strong movements, offering the potential for higher profits, although the risk associated with such volatile pairs are many. Overall, a look at previous volatility tells us how likely price will fluctuate in the future, although it has nothing to do with direction.All a trader can gather from this is the understanding that the probability of a volatile pair to increase or decrease an X amount in a Y period of time, is more than the probability of a non-volatile pair. Another important factor is, volatility can and does change over time, and there can be periods when even highly volatile instruments show signs of flatness, with price not really making headway in either direction. Too little volatility is just as problematic for markets as too much, we uncertainty in excess can create panic and problems of liquidity. This was evident during Black Swan events or other crisis that have historically roiled currency and equity markets. Read this Term. The trading volume of USD/CNH futures dipped 15% in the last month amid the New Year holidays in China.
“Derivatives daily average volume (DAV) on SGX rose 6.2% month-on-month (m-o-m) in February to 1.1 million contracts, even as total traded volume was lower year-on-year (y-o-y) at 17.7 million due to fewer trading days in onshore markets. Several markets across East Asia were closed for extended Lunar New Year holidays in February, a period that was marked in January last year. SGX’s derivatives platform was open and available through these holidays,” SGX mentioned in the press release.
Additionally, SGX reported a jump in FTSE China A50 Index Futures DAV and FTSE Taiwan Index Futures DAV.
Commodities and Securities
Apart from the growth in FX futures and the overall derivatives average daily volume, SGX highlighted a surge in its commodities business. Petrochemical derivatives volume and Paraxylene traded volume jumped significantly during February 2021. However, Iron ore derivatives volume dropped 12% in February due to the Lunar New Year holidays. The securities' daily average value (SDAV) on SGX was down nearly 1% in February.
SGX recently partnered with Belgium-based financial services provider, Euroclear Bank to launch the Orchid bond structure in Singapore.
Singapore Exchange (SGX) today reported the market statistic for the last month. The exchange saw a surge in FX futures trading volume during February 2021 as the total number of contracts reached 2.3 million, which is a 7% jump compared to January 2021.
According to the official announcement, the latest surge in FX volumes was led by INR/USD futures as the volume in the currency pair jumped 22% in February due to high market 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 can be successful in both low and high volatile environments, but the strategies employed are often different depending upon volatility. Why Too Much Volatility is a ProblemIn the FX space, lower volatile currency pairs offer less surprises, and are suited to position traders.High volatile pairs are attractive for many day traders, due to quick and strong movements, offering the potential for higher profits, although the risk associated with such volatile pairs are many. Overall, a look at previous volatility tells us how likely price will fluctuate in the future, although it has nothing to do with direction.All a trader can gather from this is the understanding that the probability of a volatile pair to increase or decrease an X amount in a Y period of time, is more than the probability of a non-volatile pair. Another important factor is, volatility can and does change over time, and there can be periods when even highly volatile instruments show signs of flatness, with price not really making headway in either direction. Too little volatility is just as problematic for markets as too much, we uncertainty in excess can create panic and problems of liquidity. This was evident during Black Swan events or other crisis that have historically roiled currency and equity markets. 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 can be successful in both low and high volatile environments, but the strategies employed are often different depending upon volatility. Why Too Much Volatility is a ProblemIn the FX space, lower volatile currency pairs offer less surprises, and are suited to position traders.High volatile pairs are attractive for many day traders, due to quick and strong movements, offering the potential for higher profits, although the risk associated with such volatile pairs are many. Overall, a look at previous volatility tells us how likely price will fluctuate in the future, although it has nothing to do with direction.All a trader can gather from this is the understanding that the probability of a volatile pair to increase or decrease an X amount in a Y period of time, is more than the probability of a non-volatile pair. Another important factor is, volatility can and does change over time, and there can be periods when even highly volatile instruments show signs of flatness, with price not really making headway in either direction. Too little volatility is just as problematic for markets as too much, we uncertainty in excess can create panic and problems of liquidity. This was evident during Black Swan events or other crisis that have historically roiled currency and equity markets. Read this Term. The trading volume of USD/CNH futures dipped 15% in the last month amid the New Year holidays in China.
“Derivatives daily average volume (DAV) on SGX rose 6.2% month-on-month (m-o-m) in February to 1.1 million contracts, even as total traded volume was lower year-on-year (y-o-y) at 17.7 million due to fewer trading days in onshore markets. Several markets across East Asia were closed for extended Lunar New Year holidays in February, a period that was marked in January last year. SGX’s derivatives platform was open and available through these holidays,” SGX mentioned in the press release.
Additionally, SGX reported a jump in FTSE China A50 Index Futures DAV and FTSE Taiwan Index Futures DAV.
Commodities and Securities
Apart from the growth in FX futures and the overall derivatives average daily volume, SGX highlighted a surge in its commodities business. Petrochemical derivatives volume and Paraxylene traded volume jumped significantly during February 2021. However, Iron ore derivatives volume dropped 12% in February due to the Lunar New Year holidays. The securities' daily average value (SDAV) on SGX was down nearly 1% in February.
SGX recently partnered with Belgium-based financial services provider, Euroclear Bank to launch the Orchid bond structure in Singapore.