The Singapore Exchange’s results for its financial year 2014, which has just ended, showed that with the exception of securities, all its businesses grew. SGX’s net profit was down 5% at S$320 million on a 4% fall in revenue to S$687 million.
Revenue from SGX’s securities business fell 18% to $226.9 million, contributing to 33% of SGX’s total revenue from 38% in the previous year. The total traded value of securities was 22% lower at S$286.3 billion and the daily average traded value decreased 23% to S$1.14 billion.
In the exchange’s accomplishments for the year, CEO Magnus Bocker pointed to the implementation of dynamic circuit breakers as a market safeguard and SGX’s joint consultation paper with the Monetary Authority of Singapore setting out proposals to further enhance the market. The exchange introduced new order types in March 2014 to improve trade execution and in June, opened up to market makers and liquidity providers, and launched a new pricing scheme.
SGX’s derivatives revenue and volumes both grew 3% to 104 million contracts. Activity in commodity derivatives, with iron ore products growing 234%, made up for weaker results in other categories, such as Nikkei 225 futures.
During 2014, the exchange introduced more Asian equity index futures, launched foreign exchange futures and the clearing of non-deliverable interest rate swaps. During the next year it plans to launch electricity and gold futures, and expand its suite of FX futures.