SGX Group's November Report Reveals 25% Surge in FX Futures Volume

Tuesday, 12/12/2023 | 13:04 GMT by Jared Kirui

The report shows a shift in consumer sentiment across various sectors.

SGX USD/CNH futures surged 33% YoY, reaching 2.7 million contracts.

The Singapore Exchange (SGX Group) has unveiled its market statistics for November 2023, highlighting high volumes in commodities, FX, and REITs. This report disclosed a shift in investor sentiment across various sectors.

The derivatives market led the charge with an uptick of 8% month-on-month (MoM), trading 22.4 million contracts. Notably, SGX FX witnessed a boost of 25% in FX futures volume, hitting over 4 million contracts.

SGX USD/CNH futures, a key international RMB futures contract, soared 33% year-on-year (YoY), reaching 2.7 million contracts. The appreciation of the RMB spurred this growth as exporters engaged in year-end FX conversions, according to the statistics released by SGX Group. SGX INR/USD futures, among the top 10 listed FX futures globally, grew 13% to 1.1 million contracts.

SGX Futures Maintains Upward Momentum

In September, SGX witnessed an upswing of 20% YoY in its total FX futures trading volume, reaching 4.1 million contracts. This expansion was primarily fueled by concerns over prolonged high-interest rates in the US.

The SGX USD/CNH futures contracts rose 77% in volume, hitting a record average daily volume of USD $15 billion. In equity derivatives, SGX experienced heightened demand, notably in the GIFT Nifty 50 Index Futures, which jumped 9% MoM.

Simultaneously, the domain of sustainable finance attracted global institutions as SGX FTSE Blossom Japan Index Futures achieved a record month-end open interest of USD $116 million. Commodity trading surged to unprecedented levels in September as it increased 77% YoY to 5.4 million contracts.

Fixed Income and Renminbi FX Futures

In the fixed income sector, SGX Fixed Income witnessed a remarkable upsurge of 28% MoM in the amount issued from 39 new bond listings for September.

Major financial institutions like The Export-Import Bank of Korea, Sumitomo Mitsui Trust Bank Ltd., Nippon Life Insurance Co., and Bayfront Infrastructure were among the highlights, showcasing multi-billion-dollar offerings.

SGX unveiled a substantial growth trajectory in its FX futures, notably witnessing a record-high of 2.2 million contracts in renminbi FX futures in March 2023. This achievement represented a notable growth rate of 44% MoM. This was accompanied by a rise of 79% YoY in the average daily volume of renminbi futures.