SGX reports all-time-high for derivatives volume, FX in September

Securities market turnover value increased by 6% MoM.

The Singapore Exchange reported a record month for derivatives trading volume on the back of heightened activity in the foreign exchange (FX) and commodity futures.

SGX said that challenging macro conditions spurred institutional demand to manage portfolio risk. Derivatives' daily average volume (DDAV) rose 14% month-on-month (MoM) in September to 1.05 million contracts, achieving a single-day record of 2.97 million contracts on 27 September. 

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Total traded volume for the month climbed 14% MoM to 22.8 million contracts. For the  July to September quarter, DDAV was up 3% year-on-year (YoY), with total volume gaining 4% YoY. The average fee per contract for equity, currency and commodity derivatives for the quarter was $1.62.

Meanwhile, futures traded volume on SGX FX rose at an all-time high of 31% MoM in September to 3.42 million contracts with a total notional traded value in excess of US$205b. For the July to September quarter, volume climbed 32% YoY to 8.55 million contracts.

SGX USD/CNH Futures volume gained 36% MoM and 73% YoY to 1.6 million contracts, also a record. Open interest increased 19% YoY to US$11.12b, consolidating the contract’s position as the world’s most widely traded international RMB futures. SGX INR/USD Futures volume was up 25% MoM and 26% YoY at 1.63 million contracts.

Securities market

Securities market turnover value on SGX Securities increased 6% MoM in September to $25.8b, buoyed by Straits Times Index (STI) constituent stocks and real-estate investment trusts (REIT). Securities daily average value (SDAV) was up 6% MoM at $1.17b. The average securities clearing fee for the July-to-September quarter was 2.58 basis points.

The STI slid 2.8% to 3,130.24 in September. Its constituent stocks saw over $300m in net institutional flows, with the largest inflows to DBS, OCBC Bank and Singtel. The benchmark has advanced 1% year-to-date, outperformed the FTSE All-World Index and is the only developed market gauge to yield positive returns. During the month, Emperador Inc., which debuted on SGX Securities with a secondary listing in July, was included as an STI constituent.

Meanwhile, the market turnover value of exchange-traded funds (ETF) gained 25% MoM in September to $315 million, supported by fixed income and commodity ETFs, whilst turnover of structured warrants and daily leverage certificates (DLC) was up 7% MoM at $652m. 

SGX Securities welcomed the listing of CSOP CGS-CIMB FTSE Asia Pacific Low Carbon Index ETF, the world’s first low-carbon ETF with a geographical focus on developed and emerging markets in Asia-Pacific. This brought the total global assets under management (AUM) of sustainability-linked ETFs on SGX to more than $1b.

On SGX Fixed Income, the amount issued from 100 new bond listings stood at $26.2b in September or almost $78b for the July to September quarter. Highlights included $500m five-year retail green notes by Frasers Property Limited, US$374.3m of infrastructure asset-backed securities by Bayfront Infrastructure Management and a US$2.65b three-tranche bond offering by the Republic of Indonesia.