SGX reports mixed FX volumes, completes MaxxTrader acquisition

abdelaziz Fathi

The Singapore Exchange (SGX), the country’s paramount exchange operator, has released its monthly volumes across its derivatives and commodities segments for January 2022.

In foreign exchange (FX), SGX’s daily average value dropped 11 percent in January 2022, having yielded S$1.9 billion, down year-over-year from S$2.1 billion in January 2022.

Furthermore, there was reduced volatility in the renminbi ahead of the Lunar New Year holidays, with the traded volume of USD/CNH futures declining in tandem. However, month-end open interest of USD/CNH, which is the world’s most widely traded RMB futures contract, soared 12% month-over-month to more than US$11 billion, signaling its growing adoption as a hedging tool.

In different vein, the monthly volume of INR/USD futures rose 6% month-over-month to over 1 million contracts in January as India’s moderated growth outlook fueled rupee hedging demand.

During the month, SGX completed the takeover of FX trading platform MaxxTrader to expand its reach in the foreign exchange space. Together with its wholly owned subsidiary BidFX, SGX is now Asia’s largest FX derivatives exchange. The deal aligns with Singapore’s plans to build an integrated platform enabling global access to FX OTC and futures participants.

SGX acquired MaxxTrader from FlexTrade Systems, a multi-asset execution and order management systems provider, for $125 million. Headquartered in Singapore, the platform provides FX pricing and risk solutions for sell-side institutions including banks and broker-dealers, as well as a multi-dealer platform for hedge funds.

Aggerate derivatives volumes on SGX rose in January to about 20 million contracts, indicating a rise of 3 percent and hitting the highest since September 2021. The monthly turnover in equity index futures volume also climbed 7 percent month-over-month to 15.1 million contracts, with steady activity in FTSE China A50 Index Futures amid signs that the mainland’s economic growth could slow in the near term.

SGX-listed companies continued to tap the equity capital markets with three SPAC listings to its mainboard in January, which raised S$520 million. The amount issued from 121 new bond listings on the exchange’s international debt marketplace increased 59 percent in January to S$44.5 billion

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