Trading interest in SGX's India-related futures surges in Q1

SINGAPORE Exchange's (SGX) India-related products saw larger trading interest in the first three months of 2015, amid forecasts of improving economic conditions in India.

Volume for the SGX Nifty Index Futures for the first quarter rose more than 30 per cent compared to the same period last year.

At the same time, SGX INR/USD currency futures achieved a record daily volume of 32,055 contracts traded, representing over US$1 billion in notional turnover, on April 8 - the same day that Moody's ratings revised India's sovereign rating outlook from "stable" to "positive".

Tighter futures bid-ask spreads averaging less than the equivalent of 0.5 NDF (non-deliverable forward) pips have contributed to the surge in trading activity, culminating in a record total monthly volume of 216,215 contracts traded in March 2015, SGX said.

This is more than 20 times the volume a year earlier, and up 15 per cent month-on-month, it added.