FICC Revenue of SGX Increases 24% in FY21

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) released its financial numbers for FY2021 today and reported a strong jump in FICC revenues. Overall, the exchange posted a marginal drop in net profit.

According to a press release shared with Finance Magnates, SGX reported total revenues of S$1,056.0 million in FY21, compared to S$1,052.7 million in FY20. SGX saw FICC revenues of S$211.8 million in FY21, which is 24% higher compared to FY20.

In terms of expenses, the total number increased 8% to S$525.2 million. Adjusted EBITDA stood at S$623.9 million while adjusted earnings per share were 41.8 cents during the mentioned period.

Commenting on the latest results, Loh Boon Chye, Chief Executive Officer of SGX, said: “We achieved a strong performance as we invested in growing our business, delivering similar record revenues compared to last year amidst a challenging environment. Notwithstanding the lower treasury income, our core business segments remained robust, with our fast-growing subsidiaries, Scientific Beta and BidFX, providing an added boost. While the low-interest-rate environment will continue to impact our treasury income, we believe it will also spur demand for our Multi-Asset Multi-Asset Composed of varying asset classes, multi-asset is a blanket designation combining different classes such bonds, equities, cash equivalents, fixed income, and alternative investments.When compared to traditional balanced funds, multi-asset solutions differ because they target specific investment outcomes. This includes outcomes such as return above inflation as opposed to gauging performance against standardized benchmarks.Given the composition of multi-asset classes, they need to be dynamically Composed of varying asset classes, multi-asset is a blanket designation combining different classes such bonds, equities, cash equivalents, fixed income, and alternative investments.When compared to traditional balanced funds, multi-asset solutions differ because they target specific investment outcomes. This includes outcomes such as return above inflation as opposed to gauging performance against standardized benchmarks.Given the composition of multi-asset classes, they need to be dynamically Read this Term offerings as investors seek enhanced returns.”

Since the start of 2021, Singapore Exchange has posted strong growth in FX Volumes. In June 2021, the exchange reported a surge in demand for SGX INR/USD futures and SGX USD/SGD futures.

FICC Revenue

The FICC revenue of SGX accounted for nearly 20% of the total revenue in FY21, compared to 16% in FY20. “FICC revenue, comprising Fixed Income as well as Currencies and Commodities, Derivatives revenues, increased 24% to S$211.8 million (S$171.4 million), accounting for 20% (16%) of total revenue. Excluding BidFX, which was acquired in July 2020, FICC revenue would be comparable at S$172.1 million (S$171.4 million). Fixed Income revenue rose by 17% to S$14.9 million (S$12.8 million). Listing revenue: S$11.5 million, up 22% from S$9.4 million. Corporate actions and other revenue: S$3.4 million,” SGX added.