Singapore Exchange (SGX) released its financial numbers for December 2020 and reported a strong month due to growing institutional participation and China’s economic recovery. The exchange reported an 11% jump in USD/CHN futures contracts on the back of RMB appreciation.
According to the official press release, the demand of investors for ETFs increased significantly in 2020 as ETF turnover jumped 131% to S$350 million ($263 million). The total securities market turnover reached S$24.4 billion in December 2020, a significant 21% jump compared to the same period in 2019.
SGX mentioned that the listing of Lion-OCBC Securities Hang Seng TECH ETF enhanced efficient access to the fastest-growing Chinese technology companies. The exchange reported its highest monthly volume of commodity derivatives since March 2020.
“Total securities market turnover value on SGX rose 21% y-o-y in December to S$24.4 billion, while securities daily average value (SDAV) gained 15% to S$1.1 billion. ETF turnover jumped 131% to S$350 million, as the turnover of structured warrants and daily leveraged certificates (DLC) climbed 4% to S$495 million. The listing of the Lion-OCBC Securities Hang Seng TECH ETF enhanced efficient access to the fastest-growing Chinese technology companies. The ETF had month-end assets under management (AUM) of S$92 million, compared with S$64 million at the listing,” SGX mentioned in the official announcement.
FX and Commodities
SGX released strong numbers for commodities as iron ore derivatives contracts jumped nearly 45% to reach 2 million contracts. SGX’s virtual steel mill derivatives have shown consistent growth. On the FX side, despite some challenges across currency pairs like INR/USD due to reduced market Volatility , the exchange reported growing interest in USD/CNH futures contracts.
“SGX USD/CNH Futures climbed 11% to 872,511 contracts as the RMB appreciated further on the back of China’s economic recovery, as well as expectations that Beijing Washington relations may improve following the U.S. elections in November. The SGX contract is the world’s most widely traded international RMB futures,” the official press release states.
“In commodity markets, iron ore derivatives traded volume on SGX increased 45% y-o-y to 2 million contracts in December on the back of strong steel demand in China. This led to a 45% gain in total commodity derivatives traded volume to 2.4 million, the highest since March 2020,” SGX added.
