SGX Sees 10% MoM Uptick in FX Futures Demand

The Singapore Exchange (SGX) has published its June’s market statistics, showing a total securities market turnover of S$38 billion ($27.28 billion) - a 74 percent year-on-year jump.

The securities daily average volume (SDAV) also surged by 50 percent year-on-year to S$1.73 billion ($1.24 billion).

The exchange-traded fund (ETF) market took the biggest forward leap of 138 percent year-on-year to touch S$487 million ($349.74 million) - the SPDR STI ETF traded 10 times higher y-o-y at S$210 million ($150.81 million) with fund size crossing the S$1 billion ($718 million) mark during the month.

According to the press release, the surged volumes are sending strong signals of market recovery with the reopening of the major economies following the COVID-19 induced global lockdown.

Growing demands in the futures market

The demand also jumped in the futures market as the total equity index futures traded volume on SGX rose 20 percent month-on-month in June to 14.5 million contracts, the highest in three months.

The SGX also recorded the exchange of 2.19 million foreign exchange (FX) futures contracts in June - a month-on-month jump of 10 percent. The exchange highlighted the growing institutional demand for managing risks behind this significant jump.

The exchange is also expanding its reach into the Asian FX futures market with the recent acquisition of an 80 percent stake in BidFX, a cloud-based FX Trading Platform Trading Platform In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real Read this Term for institutional investors. It was already holding the other 20 percent of the trading platform.

Last month, the exchange also launched 10 Singapore Single Stock Futures (SSFs) to meet the growing demand for a broader suite of Singapore-linked equity products and also announced its plans to introduce SGX FTSE Taiwan Index futures this month.

In June, markets all around the world have reported a healthy uptick following the slump in the market after the record March Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad Read this Term.

Notably, the exchange also launches a $3.5 million response package in March for the listed-companies affected by the COVID-19 outbreak.