Even as its equities markets declined, the Singapore Exchange (SGX) has recently seen volumes grow in its derivatives markets.
Securities turnover for October fell 6% year-on-year at SGX to S$26.0 billion (US$21.3 billion), while daily average value was 14% lower at S$1.2 billion (US$1 billion). Compared to September, securities turnover dipped 8% and daily average value traded fell 16%. However, financial derivatives volume at SGX grew 20% year-on-year to 7 million contracts and daily average volume was up 10% at 333,464 contracts.
Hong Kong also feels equities pinch
Third quarter results from HKEx also revealed a tepid Hong Kong securities market, with the average daily turnover value for the quarter decreasing 36% to HK$46.4 billion (US$6 billion) on the same period in 2011, according to the company.
The average daily number of derivatives contracts traded on the Futures Exchange also fell 20% on Q3 2011 to 243,303. Yet the exchange is continuing to prepare itself for increasing over-the-counter (OTC) derivative business, insisting the development of its OTC derivatives clearing business was progressing well.
“Our new OTC clearing house, OTC Clearing Hong Kong Limited (OTC Clear), is the first OTC clearing house in Hong Kong,” said Chow Chung Kong, chairman of HKEx in a statement accompanying the results. “The finalisation of OTC Clear’s rules and procedures and the implementation of its systems are underway.”
The Exchange is also presently reviewing responses to consultations which were conducted in the third quarter of 2012. One proposal would implement trading halts that would let listed companies publish announcements with price sensitive information during trading hours. Consultation conclusions will be released “later this year”.