SGX Reveals Solid Financials for Q1 FY2018, Derivatives Up Double Digits

Singapore 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 (SGX), the country’s paramount exchange operator, has just reported its comprehensive financial metrics for the previous three-month period, which showed a robust performance across its securities and derivatives operations.

In terms of the group’s Q1 FY2018 net profit, SGX yielded a figure of $91 million, up 9 percent on a year-over-year basis from $83.1 million in Q1 FY2017.

Looking at SGX’s operating revenues during Q1 FY2018, the group reported $204.5 million over this timeframe, growth of 7 percent year-over-year from $190.8 million in Q1 FY2017.

Operating expenses also ticked higher in Q1 FY2018, coming in at $106 million, higher by 9 percent on a year-over-year basis, compared to $97.2 million in Q1 FY2017.

One of the largest business segments that saw growth in Q1 FY2018 was SGX’s securities trading and clearing revenue which increased $4.1 million or 9 percent to $51.2 million relative to $47.1 million a year back. The figure accounted for 25 percent of SGX's total revenues.

On a related note, SGX’s derivatives business achieved the largest advance on a year-over-year basis, rising to $80.6 million from $70.8 million in Q1 FY2017, or higher by 14 percent.

SGX’s earnings per share (EPS) also notched a rise on a year-over-year interval, disclosing 8.5 cents per share in Q1 FY2018, up 9 percent from 8.5 cents per share in Q1 FY2017.

Commenting on the results, Loh Boon Chye, Chief Executive Officer of SGX, said: “We are starting the financial year on a firm footing, with improved performance and healthy participation from customers across all business segments. We also saw record trading activity in our key foreign exchange (FX) futures contracts and traction in our fixed income business, which reaffirm our diversification strategy into these asset classes. Among other initiatives to boost market turnover, we were the first in Asia to launch Daily Leverage Leverage In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders Read this Term Certificates, which have seen strong trading activity since their launch in mid-July.”

Mr. Chye added in a statement on the group’s outlook and earnings: “Looking ahead, we expect the momentum in market activity to continue and return to higher levels of past years. We have made considerable progress in delivering on our priorities. Just last week, we opened our U.S. office in Chicago and signed a collaborative listings agreement with Nasdaq. These are part of our efforts to grow a global client base and increase international participation across asset classes in our markets. We are seeking opportunities to collaborate with other exchanges to expand our businesses, as well as evaluating investments and partnerships to grow our FX, fixed income and commodities businesses.”