SGX Group sets record for FX, commodity derivatives in March

FX futures traded volume on SGX FX rose 25% MoM to 3.7 million contracts.

Optimism over China’s recovery and easing expectations for global interest rates has led the Singapore Exchange (SGX Group) to set records for its foreign exchange (FX) and commodity derivatives in March.

According to its market report, the total traded volume of SGX Commodities rose 20% MoM in March to an all-time high of 4.2 million.

For Q123, volume was up 22% from the same period last year at 10.6 million contracts. 

SGX also set new highs for iron ore derivatives whose volume climbed 20% m-o-m in March to 3.7 million contracts.

“Screen volume similarly set new highs, even as over-the-counter activity grew, showing a continuing trend of increased adoption from financial participants,” SGX added.

“Forward freight agreement (FFA) futures volume gained 27% m-o-m to 246,629 contracts, a new high alongside record open interest in FFA options,” SGX added.

In the same month, SGX also set more FX records as FX futures traded volume on SGX FX rose 25% m-o-m in March to 3.7 million contracts.

For the first quarter of 2023, volume was up 36% from the same period last year at 9.3 million contracts

SGX attributed the increase to the strong institutional demand to manage Asian currency risk. 

Meanwhile, SGX USD/CNH Futures traded volume climbed 44% m-o-m in March to 2.2 million contracts, a record high as China’s domestic economic outlook improved and yuan-denominated trade settlement and investments gained traction. 

The average daily volume (ADV) of the contract – the world’s most widely traded international renminbi futures – reached a record US$9.5 billion in March, up 79% YoY. 

ADV of SGX KRW/USD Futures also increased, rising 60% y-o-y to a record 8,577 lots as market volatility drove more hedging.