SGX derivatives business drives trading volumes up

Singapore Exchange reported a 10% annual increase in derivatives revenue, driving overall trading volumes up 14% compared to 2015.

Singapore Exchange’s (SGX) derivatives business unit reported a 10% surge in sales, accounting for 40% of its full year revenues.

The exchange reported derivatives sales increased by $29.5 million in 2016, totalling $325.3 million compared to $295.8 million in 2015.

SGX said continued growth across the majority of its derivatives contracts led to an overall increase in trading volumes of 14%, to over 183 million contracts.

Its equities and fixed income revenues saw a slight increase, up 1% from 2015 totalling $405.8 million.

Changes in securities settlement saw the exchange’s post-trade unit sales increase 13% in 2016 compared to last year, as revenues reached $118.2 million.

Overall securities trading and clearing revenue for the full year totalled $205 million, which was down 2% from last year.

SGX’s securities daily average trading value (SDAV) remained largely unchanged this year, but increased activity from market makers and liquidity providers led to a 3% decrease in the average clearing fee.

In addition, the exchange had an unchanged net profit of $349 million in 2016, partly due to an impairment charge of $6 million on its recent investment in the Bombay Stock Exchange.

Loh Boon Chye, CEO of SGX, said: “We delivered consistent performance under volatile market conditions this past year.”

He added that the exchange is “conscious that economic and political uncertainties, including the decision by the UK to leave the EU, and the upcoming US presidential election, could result in market participants adopting a cautious approach.”