Singapore Exchange (SGX) has reaped the rewards of a busy market in the first half of this year, with its best set of financial results since 2008.
Its results for the year ended 30 June 2013 showed revenue of S$715.1 million and a net profit of S$335.9 million.
Both revenue and turnover showed annual increases of 10%. A busier market during the first six months of 2013 raised the securities daily average value by 11% to S$1.5 billion and total market turnover by 10% to S$363.4 billion. SGX’s derivatives market volumes were up 32% on the previous year.
In the last 12 months, SGX’s expenses were 6% higher at S$300.9 million, pushed upwards by staff wages. Next year’s operating expenses are projected to be between S$320 million and S$330 million.
SGX is continuing with an ambitious plan to build its businesses. Capital expenditure was S$31.8 million in 2013 and technology-related capital expenditure is expected be between S$35 million to S$40 million during the forthcoming year.
In the last year, SGX’s clearing houses have been among the first globally to adopt the new IOSCO Principles for Financial Market Infrastructures. That led to the introduction of a margin framework for securities cleared through the Central Depository and the Singapore Exchange Derivatives Clearing. Both of those clearing houses have been capitalised sufficiently to meet emerging global regulatory standards.
In the fourth quarter, SGX launched depository services for Renminbi-denominated bonds, the first exchange outside of Greater China to offer that service.
During the last year, SGX has helped to launch the ASEAN Link with Bursa Malaysia and the Stock Exchange of Thailand.
There was also an impairment charge of S$15.0 million on SGX’s investment in the Bombay Stock Exchange.
Market data is 5% of SGX revenue and that annual revenue was down 3%. The number of market data terminals for their securities and derivatives markets decreased approximately 10% year-on-year due to cutbacks from institutions.