Singapore Exchange (SGX) has announced a net profit increase of 28% year-on-year at the end of Q1 FY 2016, largely down to a boost in derivatives revenue.
The net profit for July to September was $99 million.
Derivatives revenue grew by 69% to $90.9 million while revenue from derivatives in equities and commodities grew 67%, this was helped by a 82% increase in volume growth in SGX’s FTSE China A50 products.
Additionally, increases in collateral management, license, and membership are all linked to the increase in profits.
Total revenue was up by 30% to $220 million with growth in securities including a 14% revenue increase in securities trading to take it up to $55.9 million. Year-on-year, securities daily average traded value (SDAV) increased 27% to $1.23 billion.
Chief executive officer Loh Boon Chye spoke of SGX’s efforts to improve liquidity in the Securities market.
“We are encouraged by the progress of our initiatives to increase the liquidity of our securities market and will continue to build on this momentum,” he said. “We appreciate the efforts of retail brokers during the recent market volatility in August, which helped increase retail participation in STI stocks.
“We remain confident about our future, and will continue to invest in growing our businesses.”