SGX Sees Volume Growth in January 2015

The “Asian Gateway” Singapore Exchange (SGX) released its January figures, reporting increased retail activity and continued growth in securities trading for the month. Derivatives volumes remained robust on the exchange with record volumes in key derivatives contracts “on the back of increased participation from all customer categories.”

Derivatives

Total derivatives volume (14.7 million contracts) was down 15% month-on-month but up 67% year-on-year. SGX’s report states that it actually saw a record volume of more than 1.5 million contracts traded in a single day. Most likely this day was January 15^th or soon after.

The SGX Indian rupee/US dollar foreign exchange futures also set a new monthly record with 206,383 contracts, a month-over-month increase of 21% and 24 times more than before. The SGX US dollar/Singapore dollar FX futures traded a total of 23,441 contracts—three times more than the month before and seven times that of the previous year.

Another single-day record was also set in January, with almost 600,000 contracts of SGX FTSE China A50 Index futures being traded. More than 7.1 million were traded throughout the month, also down monthly (25%) but up yearly (202%).

The exchange reported strong growth in its MSCI India Index futures (with a record volume of two million contracts—up 20% since last month and 43% since last year) and CNX Nifty futures. Volume of cleared OTC SGD interest rate swaps was $10.4 billion, almost four times the volume a month before and 51% higher than last year “as activity picked up with increased 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 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 Read this Term seen in both the Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term and interest rates markets.”

Securities

Average daily trading value was $1.2 billion, an increase over last month of 22% and 12% year-on-year. Total trading value was up 17% month-on-month and 12% year-on-year ($25 billion). There was one less trading day than last month and the same amount as January of last year (21).

SGX also experienced a 9% increase in their number of active clients. “Smaller board lots were introduced on 19 January to make the higher priced stocks more easily available to retail investors and early indications point to increased retail participation in the STI stocks.” Bond listings amounted to 26, raising $16 billion—double the amount a month before but the first figure to be down from the previous year (by 35%).

Commodities

SICOM futures on rubber (the world benchmark for physical rubber pricing) traded 47,335 contracts in January, an 11% monthly increase and a 69% yearly increase. Volumes of iron ore swaps and AsiaClear iron ore futures totaled 523,520 contracts. This is up 60% month-on-month and more than five times the volume of last year January—reflecting “increased support from the iron and steel industry participants.”