Singapore volumes race upward, powered by exchange-traded derivatives

During the last year, stock market capitalisation in Singapore has increased 13% to S$954 billion and daily average securities turnover has risen by 11%.

Over the last year, stock market capitalisation in Singapore has increased 13% to S$954 billion and daily average securities turnover has risen by 11%.

According to the Singapore Exchange (SGX), securities turnover during June rose by 52% year-on-year to S$32.2 billion. Exchange-traded fund (ETF) turnover in the Lion City was 22% higher year-on-year at S$426 million

Derivatives volume rose 77% year-on-year to average 556,728 contracts per day in June, which is a new monthly record for SGX.

That leap for derivatives can be explained by Nikkei futures volumes which were up 76% year-on-year at 4.5 million contracts. China A50 futures trading almost tripled to 1.7 million contracts.

However, the volume of OTC financial derivatives cleared was S$6.2 billion, down 23% year-on-year.

That fall is in spite of the investment SGX has made in bringing its OTC derivatives infrastructure up to compliance with G-20 requirements and its ambition to both capture market share and become a global clearing centre for OTC derivatives through its SGX Derivatives Clearing business.

SGX spokesperson Carolyn Lim attributed the fall to an overall decline in OTC financial derivatives volumes this year in Asia.

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