SGX’s FX, Derivatives Volumes Sees Sizable Decline in July

The Singapore Exchange (SGX) has just reported its volumes measures across its derivatives and commodities business for the month ending July 2016, which saw a generally uneven performance across its securities and derivatives operations, after a tepid rise in the month prior, according to an SGX statement.

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An analysis of SGX’s latest turnover figures showed that its securities volumes during July 2016 came in at $15.6 billion (S$21.0 billion), down -6.7% MoM from $16.67 billion (S$22.5 billion) in June 2016 – this weakness was also even more pronounced over a yearly timeframe, with July 2016’s figures corresponding to a fall of -13.2% YoY from $18.0 billion (S$24.2 billion), July 2015.

Furthermore, the SGX’s daily average value of trading in the month of July 2016, comprised of a total of 20 trading days, yielded $820 million (S$1.1 billion), rising by a factor of 10.0% MoM from $740 million (S$1.0 billion) in June 2016 – by extension, the average daily values of trading were lower by a -4.0% YoY since July 2015.

Another area of improvement was seen across the SGX’s total market capitalization, which during June 2016 climbed to $675.5 billion (S$910.3 billion), rising steadily by 1.3% MoM from $666.8 billion (S$898.7 billion) in June 2016. This figure encompassed the total market cap for all 768 listed companies on the SGX.

Derivatives and FX Lead Monthly Decline

SGX’s derivatives business was pointed notably lower in July 2016, which pared all of last month’s gains. As such, July 2016’s volumes dwindled to 12.9 million contracts traded, vs. 14.1 million contracts in June 2016, or -8.5% MoM. This was much lower when measured against 2015, having retreated -40.0% YoY from July 2015.

Looking at equity index futures, volumes at the SGX were on the decline in July 2016, falling to 10.5 million contracts in the month, which orchestrated a decline of -9.5% MoM from 11.6 million contracts in June 2016, as well as a fall of -47.0% YoY from July 2015.

Finally, July 2016 also continued to see an outperformance in its volumes of FTSE China A50 futures, which during the month captured a total volume of 5.0 million, down -2.0% MoM from 5.1 million in June 2016. The SGX’s total foreign exchange (FX) futures volume was 436,000 in July 2016, constituting a pullback of -32.1% MoM from 642,002 in June 2016 – the most likely reason for this decline was a retreat in Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or 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. Trad In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or 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. Trad Read this Term after the Brexit Brexit Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Read this Term referendum in June.