Is SGX’s revenue becoming more dependent on non-Singapore sources?

Its securities market crashed from 80% to just 60% of revenue share.

Over the past few years, SGX saw itself becoming less dependent on Singapore-based sources and more reliant on non-Singapore ones. But what really caused this?

According to RHB analyst Leng Seng Choon SGX is more Singapore centric in the past, with its securities market accounted for almost 80% of revenue share.

"Since then, the sharp expansion of the derivatives business – mainly non-Singapore indices such as SGX FTSE China A50 Index Futures (China A50), Nikkei 225 and Nifty 50, amongst others– has led to the securities market accounting for only 60% of revenue share," he said.

Leng noted that expected further expansion of derivatives business with the Baltic Exchange acquisition could lead to the securities revenue share falling even more.

The analyst said SGX could be seen as ironically iconic.

"What is iconic for SGX is that its name denotes “Singapore” but revenue is increasingly being derived from ‘non-Singapore’ sources, eg China A50, Baltic Exchange, etc," he explained.