The volume of securities traded at the Singapore Exchange failed to revive last month. In September, total turnover increased by 1% to over S$21 billion, compared to the previous month. However average daily turnover fell by 4% month-on-month and was 34% lower year-on-year.
Low securities activity has been a drag on SGX’s business for the last year, although efforts are being made to rectify that with changes to the market’s microstructure. The exchange recently announced a reduction in lot sizes which will come into effect in January 2015, which is part of efforts to boost equity turnover and encourage more retail-level activity in the domestic market.
SGX is choosing to focus on its progress in derivatives and commodities. Total derivatives volume in September was 10.6 million contracts, up 13% month-on-month and 18% year-on-year.
Total volume of equity index futures was 9.7 million contracts, a 12% increase month-on-month and a 24% rise year-on-year.
SGX’s FTSE China A50 Futures hit record volumes in September. Monthly volume was 3.9 million contracts, up 5% month-on-month and 132% year-on-year. Average daily volume was US$1.3 billion in notional terms, another high.