SGX USD/CNH futures volume hits record high at 1.5 million contracts

abdelaziz Fathi

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

SGX

Total FX futures volume on SGX stood at 3.3 million contracts in May, up by two thirds on a yearly basis. The exchange said FX activity was lifted by a 77 percent YoY jump in USD/CNH futures to 1.5 million contracts – representing a record-high monthly volume with almost US$155 billion in notional terms.

SGX INR/USD futures volume climbed 54 percent YoY to 1.6 million contracts, the highest since March 2021, representing US$41.8 billion in notional terms. SGX TWD/USD futures also hit a monthly record of nearly US$236 million notional traded.

The CNH or offshore RMB is increasingly being adopted as a safe-haven currency amid heightened risk aversion, and the SGX contract is now the world’s most traded CNH futures.

Meanwhile, commodity derivatives volume increased on both a YoY and month-on-month basis on the back of improved sentiment over China’s economic outlook.

Securities daily average value (SDAV) rose 18 percent MoM in May to S$1.51 billion, while total market turnover value increased 12 percent MoM to S$28.6 billion. The benchmark Straits Times Index (STI) has gained 3.5 percent year-to-date, with reinvested dividends boosting the total return to 5.6 percent.

The market turnover value of exchange-traded funds (ETF) stood at S$353 million in May. The six SGX-listed China equity ETFs recorded a 25th consecutive month of combined net inflows, with S$468 million of net creations since 2020. This included S$104 million of net creations YTD.

The monthly turnover in equity index futures volume increased 21 percent month-over-month to 15.7 million contracts. A steady activity in FTSE China A50 Index Futures amid signs that the mainland’s economic growth could slow in the near term.

Additionally, there were gains across the board, with SGX Nikkei 225 Index Futures volume up by 4 percent, SGX Nifty 50 Index Futures volume climbed 42 percent, while SGX MSCI Singapore Index Futures volume was up 23 percent.

Earlier in January, 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.

After five years operating as a division of TradingScreen, BidFX has emerged in 2017 as a standalone business focused on delivering a workflow solution for FX. Three years later, Singapore Exchange paid nearly $128 million to buy the 80 percent stake it does not own in BidFX. The transaction came as SGX was seeking to build its presence in foreign exchange futures and the over-the-counter market.

Read this next

Metaverse Gaming NFT

DCentral Miami brings together all of Web3, NFT, DeFi, Metaverse

The world’s biggest Web3 meeting entitled DCENTRAL Miami is set to take place November 28-29, featuring a lineup of some of the biggest and most influential names in the blockchain space.

Digital Assets

Crypto ban expands across UK banks as Starling joins ‎crackdown

UK digital bank Starling has banned ‎all customer payments related to cryptocurrencies, another blow for the crypto traders ‎who recently saw a sizable number of banks deciding not to ‎finance the wobbly asset class.‎

Interviews

Markets Direct at FIA EXPO 2022: Traders know what they want from brokers

The FIA Expo 2022, one of the most prestigious events within the global derivatives trading industry, took place in Chicago on 14 & 15 November.

Interviews

FIA Expo 2022: TNS addresses public cloud limitations with hybrid infrastructure

November is the month of the FIA Expo, one of the largest futures and options conferences in the world, bringing together regulators, exchanges, software vendors, and brokers in one place: the Sheraton Grand Chicago Riverwalk. 

Retail FX

Italy’s regulator blacks out Finance CapitalFX, MFCapitalFX

Italy’s Commissione Nazionale per le Società e la Borsa (CONSOB) has shut down new websites in an ongoing clampdown against firms it accuses of illegally promoting investment products in the country.

Retail FX

Suspected leader of Honk Kong ramp-and-dump scam appears in court

A leader of a sophisticated ramp-and-dump scheme made his first court appearance in a Hong Kong court today, charged with market manipulation and various criminal offences. The case stems from an earlier joint operation of Hong Kong’s financial watchdog, the Securities and Futures Commission (SFC), and the local police. 

Institutional FX

Cboe’s James Arrante discusses growing demand for fixed income, FX algo

We caught up with James Arrante, senior director of FX & US treasuries product and business management at Cboe Global Markets, to uncover emerging trends in the FX and fixed income markets and learn more about the bourse operator’s recent initiatives.

Retail FX

Eurotrader acquires UK broker Petra Asset Management

Eurotrader Group has formally entered into the UK market with the acquisition of FCA-regulated broker, previously named Petra Asset Management Ltd. The new entity operates under the brand name Eurotrade Capital Ltd.

Inside View, Retail FX

The Game of Chess Continues – OPEC, China and the Oil Market

Over the past decade, the US has been complaining about the amount of power which the BRIC group, and specifically China, has on the global economy. BRIC stands for Brazil, Russia, India and China; these were the world’s fastest growing economies. Only in the past 10 months, the US has turned their attention toward OPEC due to the prices of fuel. Nevertheless, China seems to have a strong influence even over the price of crude oil.

<