Singapore Exchange (SGX) released the monthly trading volumes for February 2022, noting that derivatives daily average volume surged to the highest volume in almost two years. According to the report, the figures soared as heightened volatility and concerns over inflation boosted risk-management activity.
Moreover, the Ukraine-Russia crisis added volatility to the derivatives’ volumes across the board, adding to challenges facing commodity markets and supply chains worldwide. As a result, the SGX’s derivatives daily average volume (DAV) reached 1.06 million contracts in February, which is the highest since March 2020. On a year-over-year (y-o-y) basis, derivatives traded volume grew 5% to 18.6 million contracts.
Also, SGX Nifty 50 Index Futures volume increased 33% year-over-year, contributing to a 5% increase in equity index futures volume. A 10% increase in traded volume of the MSCI Singapore Index Futures was recorded last year, while a 4% increase in traded volume of the Nikkei 225 Index Futures was recorded.
Forex Figures on SGX
In forex , open interest on SGX USD/CNH Futures hit a record US$12.4 billion in February, with volume growing by 15% year-over-year to 823,524 contracts. With risk aversion on the rise, offshore RMB or CNH is increasingly used as a safe-haven currency, and the SGX contract is the world’s most traded CNH futures contract.
The total volume of FX futures traded on the Singapore Exchange was US$107.8 billion, with open interest at US$13.9 billion, which is up 56% year-on-year. In February, the average daily value of SGX securities rose 36% month-over-month (m-o-m) to S$1.6 billion, which is the highest since March 2021. Securities market turnover grew 16% month-over-month to S$29.6 billion. The top performers, as well as most active stocks during the month, were Rex International Holding Ltd. and Samudera Shipping Line Ltd.
Straits Times Index (STI) fell 0.2% in February to 3,242.24. Although it returned 4% over the first two months of 2022, it plummeted 4.5% less than the FTSE ASEAN All-Share Index, 4.5% less than the FTSE Asia Pacific Index, and 6.6% less than the FTSE All-World Index.
In January, the trading volumes on SGX rose by +3% month-on-month to 20 million contracts (approx), the largest amount since September 2021.
