Record trading volumes for SGX commodity derivatives, FX futures in March on China’s reopening

THE Singapore Exchange : S68 0% (SGX) posted multiple record trading volumes in commodity derivatives and foreign exchange (FX) futures in March, as China’s reopening spurred investor optimism.

In its market statistics for March on Monday (Apr 10), SGX noted that trading activity in the month was driven by optimism around China’s recovery, as well as easing expectations for global interest rates to stay elevated.

The total traded volume on SGX Commodities rose 20 per cent month on month to an all-time high of 4.2 million contracts, SGX said.

Iron ore derivatives volume climbed 20 per cent on month to a record 3.7 million contracts, and forward freight agreement futures volume increased 27 per cent to a new high of 246,629 contracts.

The total derivatives traded volume rose 17 per cent to 23.5 million contracts, the highest since November 2022, while derivatives daily average volume climbed 4 per cent to one million contracts.

Meanwhile, FX futures traded volume on SGX FX also rose 25 per cent to 3.7 million contracts, amid strong institutional demand to manage Asian currency risk.

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Traded volume on the SGX USD/CNH Futures climbed 44 per cent to a record high of 2.2 million contracts, and its average daily volume (ADV) reached a record US$9.5 billion, as China’s domestic economic outlook improved and yuan-denominated trade settlement and investments gained traction.

The ADV of SGX KRW/USD Futures also increased to a record 8,577 lots as market volatility drove more hedging.

Meanwhile, SGX’s securities market turnover value gained 27 per cent in March to S$28 billion, the highest since May 2022, driven by the inclusion of Sembcorp Marine in the MSCI Singapore Index, increased trading activity in the banking sector, as well as growth in small and mid-cap stocks.

The securities daily average value also rose 10 per cent in March to S$1.22 billion, the highest since November 2022.