Singapore Exchange Reports Jump in FX Volume during April 2021

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) announced its market statistics for April 2021 today. The exchange reported strong growth in FX volume as the total number of contracts reached 2.2 million last month. According to the official press release, INR/USD futures reached 1.4 million contracts in April 2021, which is a jump of 38% compared to the same period in 2020. Singapore Exchange also reported a 13% increase in USD/CNH futures as the total number of contracts reached 766,980. On 30 April 2021, USD/SGD futures at Singapore Exchange reached a single-day record high of 10,521 contracts. SGX saw significant growth in secondary fundraising during the last month. “Derivatives traded volume on SGX rose 5% year-on-year (y-o-y) in April to 17.5 million contracts. SGX’s suite of pan-Asia benchmark equity derivatives climbed to 12.3 million, led by an 11% increase in SGX FTSE China A50 Index Futures trading volume to 6.7 million. SGX Nifty 50 Index Futures grew 8% to 2.1 million contracts while SGX MSCI Singapore Index Futures were up 17% at 1 million,” SGX mentioned in the official announcement. In January 2021, Singapore Exchange partnered with FTSE Russell to accelerate its SGX FIRST sustainability agenda and introduced ESG derivatives during the same month.

Total Commodity Volume

Despite the reason that the overall securities market turnover dropped nearly 9% year-on-year in April, the exchange saw consistent growth in its total commodity volume. Additionally, Singapore Exchange reported 2.2 million commodity contracts in April 2021, which is up 25% compared to the same period last year. “Record physical iron ore prices bolstered demand to manage risk via options contracts. Freight derivatives volume continued to be underpinned by tightness in supply chains across dry-bulk markets, with forward freight agreements (FFA) surging 90% to 144,423 contracts. SGX’s unrivaled offering enables market participants to manage bulk cargo and freight risks on a liquid and capital-efficient platform,” SGX added. In February 2021, SGX announced a partnership with Belgium-based financial services provider, Euroclear Bank to launch the Orchid bond structure in Singapore. Furthermore, the exchange welcomed Haitong International as a Clearing Clearing Clearing is a general term that simply means many different things depending on the subject and related industry. Most commonly, this refers to the reciprocal exchange between banks of checks and drafts, and the settlement of the differences, or the total of claims settled at a clearinghouse. In finance and banking, the word clearing has different meanings depending on the more specific business model. Moving checks from the bank where they were deposited to the bank on which they were drawn. Th Clearing is a general term that simply means many different things depending on the subject and related industry. Most commonly, this refers to the reciprocal exchange between banks of checks and drafts, and the settlement of the differences, or the total of claims settled at a clearinghouse. In finance and banking, the word clearing has different meanings depending on the more specific business model. Moving checks from the bank where they were deposited to the bank on which they were drawn. Th Read this Term member in March 2021.