SGX Incurs Staunch Decline in FX Volumes During December

The Singapore Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term (SGX) has reported its volumes across its derivatives and commodities activities for the month ending December 2015, which again fell double digits MoM, according to an SGX statement.

In terms of securities, the turnover at the SGX during December 2015 came in at just $11.4 billion (S$17.0 billion), down -12.3% MoM from $13.5 billion (S$19.4 billion) in November 2015, constituting a -26.4% fall in the last two months alone – across a yearly timeframe, the December 2015’s figure is also -21.0% lower YoY from December 2014.

In addition, the SGX’s daily average value of trading in December 2015 was reported at $539 million (S$774), a staunch decline from $675.6 million (S$970 million) in November 2015, representing a drop of -20.2% MoM.

The SGX’s total market capitalization came in at $630.1 billion (S904.8 billion) in December 2015, virtually unchanged MoM from $628.5 billion (S$902.4) billion in November 2015 – this included the total market cap for all 769 listed companies on the SGX.

Derivatives Volumes Continue to Mount a Comeback

Across its derivatives business, December 2015’s volumes notched its first consecutive monthly growth in nearly half a year. December 2015 saw $14.4 million contracts traded, which corresponded to a jump of 5.9% MoM from 13.6 million contracts traded in November 2015. This figure was significantly lower when magnified under the lens of its yearly performance, as volumes declined by -17.0% YoY from December 2014.

In terms of equity index futures volume at the SGX, December 2015 saw 12.2 million contracts traded, higher by 4.2% MoM from 11.7 million contracts in November 2015, and but down -23.0% YoY from December 2014.

The FTSE China A50 futures were by far the most active contract traded on the SGX during December 2015, which reported a total volume of 6.4 million, down -1.5% MoM from 6.5 million in November 2015. Finally, the SGX’s total FX futures volume was 425,188, which represents an palpable decrease of -10.7% MoM from 475,887 in November 2015.

Earlier this week, the SGX revealed growing USD/CNH futures trading volumes that swelled to 51,702 contracts in the month of December 2015, jumping 47.2% MoM from 35,128 in November 2015 – this corresponds to a value of $5.1 billion.