Singapore Exchange (SGX) has released its market
statistics for September, highlighting a record trading activity in commodities
and forex. Besides that, SGX announced the launch of Singapore’s
largest equity ETF focusing on climate action.
SGX’s FX market recorded a substantial growth
in September. Its total FX futures trading volume increased by 20% year-on-year
(YoY) to 4.1 million contracts. According to the company, the concerns about
prolonged high interest rates in the US spurred the increase in trading activity. The SGX
USD/CNH Futures contract surged by 77% YoY in volume to 2.8 million contracts, with
a record notional average daily volume of almost USD $15 billion.
Comparatively, SGX’s total FX futures trading volume
surged by 26% month-on-month (MoM) to 4.2 million contracts in August. The
trading volume of SGX USD/CNH Futures was also recorded at 2.8 million in
August. Additionally, SGX INR/USD Futures saw an increase of 11% MoM to 1.2 million contracts.
SGX Equity Derivatives experienced increased demand,
particularly in the GIFT Nifty 50 Index Futures, which jumped 9% MoM in
September. On the sustainable finance front, SGX FTSE Blossom Japan Index
Futures attracted global institutions with a record month-end open interest of
USD $116 million.
Commodity derivatives trading reached unprecedented
levels in September, with an increase of 77% YoY to 5.4 million
contracts. This surge encompasses various products such as iron ore, freight
derivatives, petrochemicals, and rubber futures. Iron ore derivatives saw a
jump of 85% YoY, driven by China’s stimulus measures and expanding steel
production.
In August, the commodity derivatives trading volume
increased by 52% YoY to 5 million contracts. Notable growth was observed in
iron ore, rubber, and dairy derivatives, with benchmark iron ore volume
increasing by 54% YoY. SGX SICOM rubber futures saw an increase of 51% YoY,
while the dairy derivatives set a record with 78,504 lots due to heightened
volatility
Volatility
In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, 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. Traders
In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, 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. Traders
Read this Term.
SGX: Screen Trading on the Rise
A notable trend is the growing adoption of screen
trading among traders, contributing to almost 60% of the total
futures activity. Forward Freight Agreement volume increased by 15% YoY.
Singapore’s securities market saw a decline in daily
average value and market turnover value in September. The benchmark Straits
Times Index experienced a drop of 0.5% MoM. However, structured warrants and Daily Leverage Certificates market turnover value increased by 4% between July and September.
In the fixed income sector, SGX Fixed Income surged
by 28% MoM in the amount issued from 39 new bond listings in September.
Highlights included multi-billion-dollar offerings by financial institutions
like The Export-Import Bank of Korea, Sumitomo Mitsui Trust Bank Ltd., Nippon
Life Insurance Co., and Bayfront Infrastructure.
Singapore Exchange (SGX) has released its market
statistics for September, highlighting a record trading activity in commodities
and forex. Besides that, SGX announced the launch of Singapore’s
largest equity ETF focusing on climate action.
SGX’s FX market recorded a substantial growth
in September. Its total FX futures trading volume increased by 20% year-on-year
(YoY) to 4.1 million contracts. According to the company, the concerns about
prolonged high interest rates in the US spurred the increase in trading activity. The SGX
USD/CNH Futures contract surged by 77% YoY in volume to 2.8 million contracts, with
a record notional average daily volume of almost USD $15 billion.
Comparatively, SGX’s total FX futures trading volume
surged by 26% month-on-month (MoM) to 4.2 million contracts in August. The
trading volume of SGX USD/CNH Futures was also recorded at 2.8 million in
August. Additionally, SGX INR/USD Futures saw an increase of 11% MoM to 1.2 million contracts.
SGX Equity Derivatives experienced increased demand,
particularly in the GIFT Nifty 50 Index Futures, which jumped 9% MoM in
September. On the sustainable finance front, SGX FTSE Blossom Japan Index
Futures attracted global institutions with a record month-end open interest of
USD $116 million.
Commodity derivatives trading reached unprecedented
levels in September, with an increase of 77% YoY to 5.4 million
contracts. This surge encompasses various products such as iron ore, freight
derivatives, petrochemicals, and rubber futures. Iron ore derivatives saw a
jump of 85% YoY, driven by China’s stimulus measures and expanding steel
production.
In August, the commodity derivatives trading volume
increased by 52% YoY to 5 million contracts. Notable growth was observed in
iron ore, rubber, and dairy derivatives, with benchmark iron ore volume
increasing by 54% YoY. SGX SICOM rubber futures saw an increase of 51% YoY,
while the dairy derivatives set a record with 78,504 lots due to heightened
volatility
Volatility
In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, 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. Traders
In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, 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. Traders
Read this Term.
SGX: Screen Trading on the Rise
A notable trend is the growing adoption of screen
trading among traders, contributing to almost 60% of the total
futures activity. Forward Freight Agreement volume increased by 15% YoY.
Singapore’s securities market saw a decline in daily
average value and market turnover value in September. The benchmark Straits
Times Index experienced a drop of 0.5% MoM. However, structured warrants and Daily Leverage Certificates market turnover value increased by 4% between July and September.
In the fixed income sector, SGX Fixed Income surged
by 28% MoM in the amount issued from 39 new bond listings in September.
Highlights included multi-billion-dollar offerings by financial institutions
like The Export-Import Bank of Korea, Sumitomo Mitsui Trust Bank Ltd., Nippon
Life Insurance Co., and Bayfront Infrastructure.