SGX Sees 111% YoY Increase in USD/CNH Futures Trading in April

Portfolio managers are using China to manage their exposure across currencies.

The Singapore Exchange (SGX) has published its market statistics for the month of April. So far, last month has proven to be difficult for trading venues, particularly for foreign exchange (forex). However, SGX has reported overall positive results.

During the month of April, the Singapore stock market led the way in terms of performance on a global scale. For the month of April, the total derivatives traded volume was 20.8 million contracts. This is higher by 37 percent year-on-year. According to the statement, this growth was largely due to an uptick in global demand for risk management across asset classes.

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China Remains Focus for FX Trading

According to the statement, China continues to be a key focus for traders. This is because portfolio managers are using the country to manage their exposure across equities and currencies.

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On the exchange, trading of futures for the USD/CNH (US dollar and Chinese yuan offshore) currency pair surged by a significant 111 percent when measured against the same month of the previous year.

The securities market on SGX also reported a growth in turnover; however, it was smaller at 7 percent, with 22.9 billion shares traded during the month. The real estate and consumer sectors drove this.

For the SGX, the securities average daily value (ADV) was S$1.05 billion ($769.2 million). This is higher than the previous month by 2 percent. The market turnover value for Exchange Traded Funds (ETFs) also rose in April, increasing 44 percent to $195 million.

The commodities industry was one of the success stories for the month, as continued volatility resulted in solid figures. Specifically, commodity derivatives volume jumped by 64 percent when measured against April of 2018. Volumes of iron ore and freight derivatives climbed 73 percent and 53 percent year-on-year, respectively.

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