Singapore Exchange (SGX) reported Thursday its derivatives volume surged in February as increased volatility and inflation concerns as well as Russia’s invasion of Ukraine boosted risk-management activity.
The derivatives daily average volume (DAV) on the exchange rose to 1.06 million contracts in February, the highest since March 2020, SGX said in a statement filed to the exchange. In March 2020, governments globally were beginning to impose lockdowns and other measures to control the spread of the Covid-19 virus.
The month of February also contained fewer trading days, including two public holidays for the Lunar New Year holidays.
Total derivatives traded volume for February rose 5 percent on-year to 18.6 million contracts, SGX said. Commodity derivatives traded volume for the month rose 36 percent on-year to 2.5 million contracts, with the volume of benchmark iron ore contracts up 41 percent on-year, while forward freight agreements (FFA) volume climbed 31 percent on-year to a record 196,634 contracts, SGX said.
SGX cited its platform’s offering of both cargo and freight risk-management products as a draw for traders as the Ukraine crisis spurred volatility in key global commodities, including iron ore.