SGX Reports FX Trading Volume Surge in March 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) today reported its market statistics for the month of March. The exchange saw a 50% month-on-month jump in total securities market turnover during March 2021. Securities market turnover touched S$38.7 billion last month, the highest level since March 2020.

According to the official announcement, FX trading volume on SGX reached 2.9 million contracts in March 2021, which is a month-on-month jump of 27%. For Q1 of 2021, the total FX volume jumped 20% quarter-on-quarter to 7.3 million contracts.

Additionally, SGX highlighted a significant jump in INR/USD futures and USD/CNH futures. SGX INR/USD futures jumped 27% quarter-on-quarter to 4.3 million, while SGX USD/CNH futures jumped nearly 9% to 2.7 million.

“Securities daily average value (SDAV) rose 24% m-o-m to S$1.7 billion, gaining 18% q-o-q to S$1.52 billion. The average securities 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 fee for the quarter was 2.68 basis points, compared with the preceding quarter. SGX set monthly volume records for its USD/SGD, INR/USD and USD/INR (USD) futures in March, reflecting strong demand among global institutional investors to risk-manage Asian currencies. The exchange is Asia’s largest FX futures marketplace,” SGX mentioned in the official announcement.

Singapore Exchange recently welcomed Haitong International as a clearing member in its securities and derivatives market.

Strong Numbers

In addition to the growing FX trading volumes, SGX reported strong growth in its commodities division. The exchange reported a jump of 39% in commodities derivatives volume during March 2021 as the total number of contracts reached 2.5 million. For Q1 of 2021, the total volume jumped 17% quarter-on-quarter to 6.4 million.

“Iron ore derivatives traded volume on SGX surged 43% m-o-m in March to 2 million contracts, bringing the quarterly total to 5.1 million, up 15% q-o-q. Almost half a million forward freight agreement (FFA) contracts changed hands in the first quarter, up 78% q-o-q. SGX’s unique offering provides a liquid and capital-efficient platform to manage bulk cargo and freight risks,” the exchange added in the press release.

Singapore Exchange partnered with Euroclear Bank in February 2021 to launch Orchid bond structure.