Singapore Exchange Posts FY2014 Q3 Net Revenue of $76 Million up 1% QoQ

Derivatives volumes at the SGX remained unchanged at 26.3 million contracts over the prior quarter, and revenue from that business

sgx logoThe Singapore Exchange (SGX) has today released results for its Q3 for its fiscal year (FY) 2014, according to information published on its website and a video broadcast recording held by its CEO Magnus Bocker at 6pm Singapore Time earlier this afternoon in Asia.

The exchange operator posted a net profit of $76 million for its Q3 for FY2014, down 22% year over year, and little changed to its prior quarter – up 1% Quarter-over-Quarter (QoQ).

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SGX’s dividend per share remained unchanged, at 4 cents per share, and earnings per share based on the net revenue totaled 7.1 cents per share, up from 7.0 cents per share in the prior quarter, equating to its revenue total of $166 million for Q3 up from $165 million in its prior fiscal year quarter.

SGXderq3
Source: SGX FY2014 Q3 results

The revenue for the exchanges securities business was on par with the revenue total from its derivatives segment, both at $52 million during its Q3 FY2014, and totaling $104 million from the $166 million in revenue reported.

Futures on the Chinese yuan renminbi (RMB) are planned to be launched subject to regulatory approval before the end of the year, around the 3rd quarter of 2014, according to SGX. Derivatives trading had remained strong although unchanged from the prior quarter as can be seen in the chart above, excerpted from the SGX’s official press release.

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The exchange had implement a number of new changes such as adding dynamic circuit breakers, new order types to help with execution, and a new fee structure to be effective June 1st 2014, along with revisions for market maker and liquidity providers.

Magnus Böcker, CEO, SGX
Magnus Böcker, CEO, SGX

The exchange also completed a thorough review of its market with the Monetary Authority of Sinagpore (MAS), with orderly trading and responsible investing, transparency and the process for adding new listing and enforcing listing rule breaches, as all areas that it would focus on improving.

Magnus Bocker, CEO of Singapore Exchange, said in the announcement, “Apart from the Nikkei 225 which had a very strong quarter a year earlier, our derivatives volumes performed credibly, demonstrating strength in the diversity of our portfolio. We also announced several new derivatives contracts including more foreign exchange futures such as contracts for the renminbi and the China A50 equity index options in support of our China focus.”

The news also follows SGX’s 2013 year totals, as covered by Forex Magnates at the start of 2014, and after the CFTC had issued it to become a Derivatives Clearing Organization (DCO) at the end of 2013.

Retail participation had grown at SGX but trading volumes were down despite the larger number of traders year over year. Shares of SGX traded down 4 cents today and were little changed, around time of coverage by Forex Magnates.

sgxq3fy2014
Source: SGX FY2014 Q3 results, excerpt from earnings presentation
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