SGX Sees 31% YoY Jump in FX Activity during August

Singapore Exchange (SGX) reported its market statistics for August 2022 today. In the mentioned period, SGX witnessed a jump of almost 31% across the FX segment as the total volume touched 2.6 million contracts.

The recent spike in the FX activity was led by a significant jump in USD/CNH futures as the total number of contracts reached 1.2 million, which is 45% higher compared to the same period last year. Moreover, a jump of 17% was observed in the futures volume related to INR/USD.

“The U.S. Federal Reserve’s unprecedented cycle of interest-rate hikes continued to place Asian currencies under pressure, driving institutional hedging on SGX FX. The SGX contract is the world’s most widely traded international renminbi (RMB) futures contract. SGX INR/USD futures volume climbed 17% y-o-y to 1.3 million contracts amid volatility in the Indian rupee,” Singapore Exchange noted in an official press release today.

In terms of traded volume related to derivatives, the exchange witnessed a marginal increase of 4%. Derivatives' daily average volume (DDAV), on the other hand, touched 921,170 contracts, which is 2% higher compared to the same period last year.

Securities Turnover

SGX highlighted that the market turnover value related to the securities segment reached 24.3 billion Singapore dollars in August, which is up by 35% compared to the previous month.

“The market turnover value of structured warrants and daily leverage certificates (DLC) gained 16% m-o-m to S$608 million. The broad pickup in securities market turnover came on the back of the corporate earnings season and a strong month-end rebalancing. Institutional portfolio rotation led to an estimated S$750 million in net institutional inflows in August, the highest since January, and mainly into the Financials and Consumer sectors. The benchmark Straits Times Index (STI) advanced 0.3% m-o-m to 3,221.67 in August. It generated a year-to-date price return of 3.1%, outperforming the FTSE All-World Index,” SGX added.