SGX’s FX Futures Trading Volume Soars to New Heights in 2017

SGX's FX futures continue to build on its H2 momentum en route to new highs in trading statistics.

The Singapore Exchange (SGX) has released its monthly volumes across its derivatives and commodities segments for August 2017. Despite a traditionally slow period for markets, the exchange saw a healthy increase in its securities and derivatives trading as volatility blossomed.

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In particular, securities and derivatives trading was more active in August 2017, helped by more dynamic market activity throughout the month. Markets were put on edge by escalating rhetoric in North Korea as diplomacy seemed to deteriorate on a daily basis throughout the month amidst tensions with the United States.

In terms of SGX’s latest turnover figures, the group reported its securities volumes at $19.3 billion (S$25.9 billion) in August 2017, up just 1.6 percent month-over-month from $19.0 billion (S$25.5 billion) in July 2017.

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The exchange also saw a total of 22 trading days in August compared to just 21 back in July 2017. The latest figures indicated a higher performance over a yearly timeframe as well, with growth of 26.0 percent year-over-year from August 2016 – SGX has consistently bested its 2016 counterpart in terms of securities trading for the duration of the calendar year.

Furthermore, the SGX’s daily average value of trading in the month also was static in August 2017, having yielded $890.0 million (S$1.20 billion), unchanged from the previous month. Average daily values of trading were higher by a 26.0 percent year-over-year from August 2016 as well, continuing a trend across H2 2017.

SGX’s total market capitalization during August 2017 was reported at $740.0 billion (S$1.0 trillion), also unchanged month-over-month from $740.0 billion (S$1.0 trillion) in July 2017. This figure encompassed the total market cap for all 753 listed companies on the SGX, losing one listing since the previous month.

FX continues strong performance

One of the best performing elements of SGX’s business in 2017 has continued to be its FX volumes, which continued into August 2017. These were reported at 800,350 contracts in August, good for an advance of 5.3 percent month-over-month from 759,983 contracts in July, and a new 2017 high. A steady erosion in the USD helped contribute to changes in FX trading, with market jitters globally also influencing markets.

Additionally, FX futures were also able to notch a strong yearly rise of 75.0 percent year-over-year from August 2016. In terms of specific instruments, the USD/CNH continued with its strong performance in H2 2017, rising to 181,120 contracts in August 2017, up 20.0 percent month-over-month – this coincided with a staggering year-over-year growth of 287.0 percent from August 2016.

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