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

July's figures were mostly lower MoM, returning to normalcy after Brexit-induced volatility sparked last month's volumes.

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.

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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 after the Brexit referendum in June.


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