Singapore's SGX sees strong derivatives trading in April 2012

Singapore's premier bourse saw an increase in derivatives trading in April 2012 compared to thinner volumes a year earlier.The SGX offers multi asset trading on equities, bonds and derivatives in addition to local products including freight.

Securities

Securities turnover was 27% lower year-on-year at S$23.5 billion; securities daily average value (SDAV) declined 27% to S$1.2 billion. Compared with March 2012, SDAV was 10% down.

Catalist turnover was S$998 million, six times that of a year earlier and up 61% from March 2012.

Daily average outstanding loans under the securities borrowing and lending programme totalled S$26.9 million, up 39% from a year earlier.

Bond issues totalled 37 raising S$17.4 billion versus 38 issues raising S$18.6 billion a year earlier. The biggest issues were Indonesia’s US$2 billion 10-year note, Korea National Oil Corporation’s US$1 billion five-year note and Samsung Electronics America Inc’s US$1 billion 5-year note.

Derivatives

Derivatives volume rose 29% year-on-year to 6.3 million contracts; daily average volume (DAV) grew 28% to 322,213 contracts. On a month-on-month basis, DAV fell 9%.

China A50 futures volume more than tripled to 595,334 contracts while trading of Nikkei 225 futures grew 29% to 2.4 million contracts. MSCI Taiwan futures volume was 18% up at 1.5 million contracts and India’s Nifty futures grew 6% to 1.1 million contracts.

SICOM rubber futures trading was up 27% at 14,157 contracts.

Clearing

Volume of commodity contracts cleared grew 40% year-on-year to 13,974 contracts; iron ore Swaps Swaps Swaps can be defined as a derivate contact composed of two parties that exchange to cash flow between two separate financial instruments.They are generally divided into two categories. This includes contingent claims (options) and forward claims, where forward contracts, swaps, and exchange-traded funds (ETFs) are exchanged. Commodity price, equity price, interest rate, and foreign exchange rate are common variables used as one of the cash flows in swaps upon initiation. Different Types of Swaps Swaps can be defined as a derivate contact composed of two parties that exchange to cash flow between two separate financial instruments.They are generally divided into two categories. This includes contingent claims (options) and forward claims, where forward contracts, swaps, and exchange-traded funds (ETFs) are exchanged. Commodity price, equity price, interest rate, and foreign exchange rate are common variables used as one of the cash flows in swaps upon initiation. Different Types of Swaps Read this Term volume more than doubled to 7,646 contracts and sub-bitumen coal swaps activity also more than doubled to 635 contracts.

Volume of interest rate swaps cleared rose 11% year-on-year to S$45.7 billion, bringing the cumulative volume since the November 2010 launch to S$258.4 billion. Volume of new IRS transactions cleared doubled to S$11.3 billion from a year earlier.

Singapore is hailing itself as the next best venue for NDF and Yuan trading, competing heavily against Hong Kong as the financial centre piece for Asia Singapore has started clearing NDF's on the SGX.

The Singapore dollar is currently trading at 1.244 against the greenback.

Traders looking for wider range of commodity derivatives have welcomed the newly formed Singapore Mercantile 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, a competing force against the SGX the SMX is offering sound alternative solution for metals and commodity traders primarily from India and China. SMX has been established under the Financial Technologies umbrella, pioneers in futures exchanges including DGCX, MCX and GBOT.

Forexmagnates team have written a detailed report on FX in Singapore, available in the current Q1 2012 quarterly report.