SGX Reports 17% Jump in FX Volume during June

Singapore Exchange (SGX) reported its market statistics for June 2021 today. The exchange posted strong growth in its FX numbers as the total monthly futures volume reached 2.4 million contracts last month, which is 17% higher compared to May 2021.

According to an official announcement, the latest surge in foreign exchange futures traded volume was driven by strong demand in SGX INR/USD futures and SGX USD/SGD futures. Compared to May 2021, INR/USD futures contracts increased by nearly 25%.

Overall, SGX reported its highest derivates total traded volume in three months during June as the number reached 18.9 million contracts.

“SGX’s suite of pan-Asia benchmark equity derivatives climbed 4% m-o-m in June to 13.5 million contracts. This included a 14% m-o-m increase in SGX FTSE China A50 Index Futures to 7.9 million contracts and a 7% m-o-m gain in SGX Nikkei 225 Index Futures to 1.2 million contracts. During the month, SGX launched the SGX Nikkei ESG-REIT Index Futures – the world’s first ESG REIT derivatives. A thrust of the SGX FIRST sustainability platform, the contract is designed to meet the growing demand for integrating environmental, social and governance (ESG) considerations into investment portfolios,” the exchange mentioned in the official press release.

SGX reported consistent growth in its FX volume since the start of 2021. In May 2021, SGX USD/CNH Futures volume jumped by nearly 20% to 869,101 contracts.

Institutional Demand

SGX highlighted strong institutional demand for FX contracts over the last month. Commodity derivatives traded volume reached 2.2 million contracts in June 2021, which is up by 12% compared to the same period last year. “Open interest in several FX contracts on SGX achieved daily record highs during the month, reflecting strong institutional demand to manage currency risk in Asia’s key economies. Open interest in SGX INR/USD Futures hit 138,207 lots or US$3.72 billion on 24 June, while SGX USD/CNH Futures reached US$10.8 billion on 10 June,” SGX added.

Singapore Exchange recently welcomed OTS Holdings Limited to its Catalist.

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