DERIVATIVES traded volume on the Singapore Exchange (SGX) rose 15 per cent year on year to 23.5 million contracts in July as activity surged in the group’s marketplaces across asset classes.
In an update on its market statistics for July 2024 released Thursday (Aug 8), SGX said the higher derivatives volume came as global investors turned to its marketplaces to manage risk amid increased volatility.
This was particularly evident towards the end of July, when the bourse’s Japan-access derivatives suite enabled market participants to manage risk around monetary decisions, including the Bank of Japan’s (BOJ) move to raise its benchmark interest rate and slow monthly bond purchases.
In light of these developments, SGX noted that its Tokyo Overnight Average Futures topped 532 lots following the contract’s debut on Jul 29.
Month-end open interest in the SGX Mini Japanese Government Bond Futures rose 21 per cent from June 2024 levels, while the SGX Nikkei 225 Index Futures traded 52,504 lots on Jul 31 – up 36 per cent over the daily average for the month.
SGX also registered record forex futures volume over July 2024 as contracts climbed 44 per cent year-on-year to 4.8 million, an all-time high.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Gains were led by SGX USD/CNH FX Futures with a record 2.9 million contracts, up 40 per cent year-on-year. SGX INR/USD FX Futures volume also grew 48 per cent on the year to 1.6 million contracts.
The bourse attributed the overall increase to bolstered portfolio hedging as volatility was fuelled by anticipated rate decisions by the BOJ and Federal Reserve, as well as uncertainties over the US presidential elections.
Commodity derivatives traded volume rose 20 per cent year on year to 5.1 million contracts, led by a 22 per cent increase in bellwether iron ore derivatives volumes.
Notably, dairy derivatives open interest set a single-day record of 171,335 lots on Jul 16, such that the month concluded at a record average of 106,386 lots.
Securities average daily volume was up 13 per cent year on year and 4 per cent month on month to S$1.2 billion in July against declines across Southeast Asia, with higher retail activity across stock segments.
SGX said Singapore’s stock market as the second-most actively traded in the region during the month.
The benchmark Straits Times Index advanced 3.7 per cent from the prior month to 3,455.94 in July, outpacing peers across Asean and Developed Asia, with year-to-date returns of 6.7 per cent.
Total securities market turnover value increased 23 per cent year on year and 26 per cent month on month to S$26.5 billion.
