Singapore Exchange posts record derivatives volume for first quarter

SGX signage at the Shenton Way building; taken October 2018.SGX signage at the Shenton Way building.

Singapore Exchange reported on Wednesday that derivatives volume in the first quarter rose to a record, with an average daily volume of more than a million contracts for the first time.

For March, total derivatives volume rose 28 percent on-month and 34 percent on-year, SGX said in a statement on Wednesday.

“Risk management was a major theme during the month, with commodity supply disruptions in Brazil and Australia spurring hedging demand for iron ore,” SGX said.

“Positive investor sentiment also drove market activity, with SGX’s equity-index futures volume achieving a record high of 18.6 million contracts in March, as portfolio investors managed their exposure to the Chinese and Japanese stock benchmarks,” it added.

A chemical plant blast in Yancheng city in China in March also spurred interest in Benzene and Styrene Monomer contracts, SGX said.

In addition, securities daily average value (SDAV) rose 5 percent on-quarter in the January-to-March period, on higher turnover in the information technology and REIT sectors, SGX said, adding that was bolstered by easing trade tensions and the U.S. Federal Reserve signalling the end of its interest-rate hiking cycle.

Total securities market turnover value rose 13 percent on-month in March to S$21.6 billion, with SDAV at S$1.03 billion, SGX said.

 

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