SGX Reports Weak Derivatives Volumes, FX Segment Shines

Total FX volumes were reported at 2.27 million contracts in September 2019, indicating a rise of 39 percent year-over-year.

The Singapore Exchange (SGX) has released its monthly volumes across its derivatives and commodities segments for September 2019. The latest securities and derivatives volumes were weakened by subdued trading that saw one of its lowest readings of 2019.

In terms of SGX’s latest turnover figures, the group reported its securities volumes at S$19.7 billion in September 2019. This figure reflected one of SGX’s lowest readings of 2019, well below August 2019 – on a monthly basis, this reflected a decline of 17 percent from S$23.7 billion.

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Of note, SGX saw a total of just 20 trading days, relative to 21 in August. The results are somewhat weaker than other institutional venues in September, nearly all of which saw a consolidation of volumes.

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Furthermore, the SGX’s daily average value of trading in the month plunged in September 2019, having yielded just S$940 million. This was a fall of 21 percent month-over-month from S$1.18 billion in August.

FX volumes shine

SGX’s total market capitalization during September 2019 was reported at S$914 billion, almost unchanged month-over-month from S$917 billion in August 2019. This figure encompassed the total market cap for all 734 listed companies on the SGX.

SGX’s FX segment was heating up for a second month in September. Total FX volumes were reported at 2.27 million contracts in September 2019, indicating a rise of 39 percent year-over-year from 1.63 million contracts in the year before. However, this figure lags behind August metrics, which came in at 2.62 million and were amongst the highest readings at SGX in 2019.

Also, in the foreign exchange (FX) market, SGX USD/CNH futures volume jumped 74 percent over a yearly basis to 818,619 contracts in September. Institutional demand to risk-manage portfolio exposure to the Indian rupee, another key Asian currency, drove a 23 percent gain in SGX INR/USD futures volume to 1.41 million contracts during the month. For the July-September quarter, aggregate FX trading volume rose to US$383 billion – a record high that strengthens SGX’s position in Asian FX futures.

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