FX volumes shine at Singapore Exchange in June

abdelaziz Fathi

The Singapore Exchange (SGX) notched a healthy gain in its FX and indices volumes, rounding off a robust half-year as sustained volatility drove institutional demand for portfolio risk management.

As June was yet another month characterized by higher volatility, SGX’s derivatives trading volume rose to a 3-month high amid macro uncertainties. The ongoing Russia-Ukraine conflict drove hedging activity with derivatives monthly volume being reported at 23.5 million contracts in June, up 24% year-on-year.

In the first half, a period where participants were challenged by severe market conditions, volume was up 13% from July-December 2021 at 116.7 million contracts, with derivatives daily average volume (DDAV) rising 18%.

Foreign exchange (FX) derivatives also stood out in June, with total futures traded volume rising 21% YoY to 2.9 million contracts. The volume of SGX USD/CNH Futures climbed 59% YoY to 1.5 million, reinforcing the contract’s position as the world’s most widely traded international RMB futures.

For January-June 2022, total FX futures volume gained 26% over the previous half-year to 15.9 million contracts, or a 31% increase to US$943.05 billion.

Fixed income volumes consolidate

In a similar vein, commodity derivatives volume rose 32% YoY in June to 2.9 million contracts. Taking a year-to-date perspective, volumes were up 15% in the first half compared with the H2 2021 at 16.2 million contracts. Demonstrating close alignment with macro developments, the SGX’s commodities offering enables market participants to express their views and manage risk efficiently.

On SGX Fixed Income, Asia’s leading international bond marketplace, the amount issued from 120 new bond listings was S$33.2 billion, bringing the January-June 2022 total to S$220.2 billion, up 5% over the prior half-year.

Securities market turnover value stood at S$25.6 billion in June, lifting turnover for the six months through June 2022 to S$170 billion, up 13% over July-December 2021. Securities daily average value (SDAV) was about S$1.17 billion for the month, bringing the half-year tally 19% higher at S$1.39 billion.

With geopolitical uncertainty, elevated inflation and recession concerns a common theme across Asian markets, SGX Group continues to provide global investors with a highly liquid toolkit to manage risk over multiple asset classes.

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