SGX’s February derivatives volume 24% higher

Singapore : S68 0% Exchange (SGX Group) : S68 0% posted an increase in derivatives volume across multiple asset classes in February as global market participants continued to trade via the bourse through the extended Chinese New Year holidays in Asia, the bourse operator said on Monday (Mar 11).

SGX numbers showed that derivatives daily average volume (DAV) increased 24 per cent year-on-year (y-o-y) or 10 per cent month-on-month (m-o-m) in February to 1.3 million contracts, while total derivatives traded volume climbed 9 per cent y-o-y to 21.9 million contracts.

Mainland China and Taiwan index futures had deep liquidity, with the volume of SGX FTSE China A50 Index Futures having risen 8 per cent y-o-y to eight million contracts and DAV rising to 534,972 lots – the highest since August 2020. The contract is the world’s most liquid international futures for Chinese equities. 

SGX FTSE Taiwan Index Futures volume was steady y-o-y at 1.3 million contracts. 

SGX noted: “With positive news flow from the global technology sector through February, investors were able to continue risk-managing Taiwan equities even with local markets closed.”

SGX MSCI Singapore Index Futures volume increased 10 per cent y-o-y in February to 1.3 million contracts, while GIFT Nifty Futures volume climbed 3.3 per cent m-o-m to 1.8 million contracts.

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Commodity derivatives traded volume was up 39 per cent y-o-y in February to 4.9 million contracts. Benchmark iron ore futures volume increased 41 per cent y-o-y to 4.3 million contracts, with a single-day record of 47.6 million tonnes traded on Feb 21.

“Volumes were particularly strong post-Lunar New Year holidays amid robust risk-management activity,” SGX commented.

Forward freight derivatives volume was 16 per cent higher y-o-y to 224,242 contracts, with open interest also rising on the back of higher freight rates, especially for Capesize loads due to increased iron ore flows. 

SGX Commodities allows market participants to manage risk for both cargo and freight on a single platform.

The volume of SGX Sicom Rubber Futures, the global pricing bellwether for natural rubber, gained 41 per cent y-o-y to 253,535 contracts while DAV reached 66,800 tonnes – the second-highest monthly level on record.

Petrochemical derivatives volume more than trebled y-o-y, bringing volume for the first two months of 2024 to 10.6 million tonnes, amounting to almost the total for FY2023.

SGX FX (foreign exchange) futures volume, meanwhile, rose 22 per cent y-o-y to 3.6 million contracts. SGX INR/USD Futures led the rise, with volume reaching an all-time high of a notional US$5.5 billion (228,091 lots) on Feb 15 while open interest climbed to a record US$4.85 billion (201,213 lots) on Feb  16. 

SGX USD/CNH Futures, the world’s most widely traded international renminbi futures, increased 27 per cent y-o-y to 1.9 million contracts.

Securities daily average value was 34 per cent higher m-o-m on SGX Securities to S$1.3 billion. In spite of trading taking place over a shorter period in February than January, total securities market turnover value increased 22 per cent m-o-m to S$25 billion. 

Singapore’s securities market remained the second most-traded in South-east Asia, SGX noted. Retail investors led the jump in activity, with the number of retail accounts that traded in February up 34 per cent m-o-m at a 12-month high.

On SGX Fixed Income, the amount issued from 99 new bond listings gained 28 per cent m-o-m in February to S$29 billion.

SGX closed S$0.03 or 0.3 per cent lower at S$9.30 on Monday, before the bourse operator published the market statistics.