Derivatives business becoming a pillar of strength for SGX

Singapore

THE Singapore Exchange (SGX) is on the cusp of turning in another strong year for its derivatives business, a sign that the market operator has found some success in diversifying its income.

"This is not a one-year wonder," CIMB head of research Kenneth Ng said. "Derivatives have been growing faster than the cash equity business for a while now."

In November, SGX posted a 26 per cent year-on-year increase in average daily traded derivatives volume, to 432,808 contracts. That easily outpaced the …