SGX FX volume rises as investors bet on China reopening

abdelaziz Fathi

The Singapore Exchange (SGX) notched a healthy gain in its FX and derivatives volumes amid optimism over China’s economic outlook and signs that the U.S. Federal Reserve will change its pace of interest-rate hikes.


Total FX futures volume on SGX stood at 2.9 million contracts in February, up by 39 percent on a yearly basis. Hedging activity on SGX FX accelerated in February amid U.S. dollar weakness related to the outlook for rates.

The exchange said FX activity was also lifted by an outsized gain, partly because of fewer trading days in the year-ago period due to the Lunar New Year. The volume of USD/CNH Futures jumped 85 percent YoY in February to 1.5 million contracts, bolstering its position as the most widely traded international RMB futures. The CNH or offshore RMB is increasingly being adopted as a safe-haven currency amid heightened risk aversion.

INR/USD futures volume also increased 2 percent YoY to 1.2 million contracts, as the Indian rupee declined towards the second half of February.

Earlier in 2022, SGX FX has added non-deliverable forwards (NDFs) to its FX electronic communication network, SGX CurrencyNode, after being approved as a Recognised Market Operator (RMO) by the Monetary Authority of Singapore (MAS). Using a central prime brokerage model, SGX CurrencyNode currently streams liquidity for FX Spot, Precious Metals and NDFs, with plans to launch FX Swaps and NDF Spreads at a later date. BNP Paribas and Deutsche Bank are the central prime brokers for SGX CurrencyNode.

On SGX Equity Derivatives, the SGX FTSE China A50 Index Futures remained the world’s most liquid international futures for Chinese equities as market share by open interest grew further in February. Traded volume of the contract rose 5 percent YoY to 7.5 million contracts, up 1 percent MoM.

The exchange said investors are pouring money into vehicles that track Chinese assets, betting that the long-awaited reopening of the world’s second-largest economy will keep powering markets higher.

Meanwhile, total derivatives traded volume rose 7 percent year-on-year in February to about 20 million contracts, the highest in three months. Benchmark contracts on SGX Commodities continued to serve as a macro proxy amid signs of China’s economic recovery.

On SGX Fixed Income, Asia’s leading international bond marketplace, the amount issued from 149 new bond listings – the most since July 2022 – climbed to S$34.1 billion in February.

Read this next


Exberry’s Guy Melamed on paradigm shift with cloud-native exchanges at FIA Boca 2023

FinanceFeeds Editor-in-Chief Nikolai Isayev spoke with Guy Melamed about Exberry’s cloud-native exchange SaaS platform certified by AWS to bring about a paradigm shift in the industry at a time of cybersecurity concerns.

Retail FX

Playtech revenue grows to €1.60 billion in 2022

Playtech plc (LSE: PTEC) reported solid financial results for the fiscal year 2022 as B2B growth and Snaitech’s record performance pushed it towards large gains in revenue and net profit.

Digital Assets

Terra founder Do Kwon arrested in Montenegro

Terra (LUNA) co-founder Do Kwon, the South Korean entrepreneur facing charges over the $40 billion wipeout of the stablecoins he created, was reportedly arrested in the region of Podgorica, Montenegro.

Metaverse Gaming NFT

Orbs Ecosystem Developers Launch TON Access To The Public

The TON Access service provides reliable and decentralized RPC nodes to decentralized applications (dApps).

Digital Assets

Bybit celebrates listing of Arbitrum (ARB) token with $400K prize pool

“At Bybit, we recognize our responsibility to provide forward-thinking opportunities for our users and lead the way in supporting the proliferation of cryptocurrency and blockchain technology.”

Digital Assets

StormGain launches StormGain DEX, a non-custodial alternative to its centralized exchange

StormGain DEX becomes accessible once a user connects their own non-custodial wallet and trades directly, with all orders settled on-chain.

Retail FX

OANDA launches CFDs on UK and US stocks for retail clients in emerging markets

“Interest in CFDs has been surging globally as they offer traders and investors the opportunity to profit from price changes without owning the underlying assets. CFDs give exposure to markets that are trending downward as well as upward, allowing traders to take positions even when volatility is high.”

Institutional FX

Bitpanda’s stocks, commodities, crypto now available to banks partnered with Visa

“We are excited to welcome Bitpanda to Visa’s Fintech Partner Connect Program. The partnership will assist banks to integrate an asset trading platform for crypto and other assets within their banking app.”

Industry News

Exchanges agree on global framework for designating stocks and shares as green

“Investors should be able to have greater visibility of issuers who have green activities in a way that is rigorous and that counters greenwashing. Exchanges strive to bring clarity, consistency, and rigor to the concept of green and to counter greenwashing.”