SFE Performs Solidly In 1999

The volume of trading at the Sydney Futures Exchange (SFE) in 1999 amounted to 29.8 million futures and options contracts, matching the near-record turnover of 1998. Last year's figure equates to a nominal value of A$9.7 trillion - more than 35 times the value of equities market activity and second only to foreign exchange as a contributor to Australia's financial markets turnover. Highlights for 1999 included: SFE's most heavily-traded contract, 3-Year Bonds, rose 2.9% to almost 10.8 million futures contracts. Trade in 3-Year Bond options rose 76% to more than half a million contracts; Turnover in SFE's premier equity product, the SPI®, grew by 3.9% to 3.8 million futures contracts. SPI® options trading increased 46% to 1.2 million contracts; The volume of total options traded rose 11% to 2.6 million; A number of individual share futures, in particular ANZ, NAB, News Corp, Rio Tinto and Telstra, experienced substantial rises in trading volumes; Wool futures, the first product introduced by SFE in 1960, rose collectively by 48.9% to almost 21,000 contracts. More than 2.2 million futures and options contracts were traded in December 1999 - only 3.8% less than for the same month the previous year - despite the trading downturn precipitated by Y2K fears. SPI® trading in December 1999 was more than 31.5% higher than for December 1998. Mr Leslie Hosking, Chief Executive, said: "In a year where a number of other major futures exchanges experienced large declines in volumes SFE's total turnover was almost unchanged from the very high levels achieved in 1998. A pleasing result given the stability of the fixed interest market in 1999, upon which SFE's major contracts in Bank Bills and Government Bonds are derived. "SFE's solid volume, especially in equity futures and options, is a reflection of the market's increasing understanding of derivatives products and of our move to full-time electronic trading. Electronic trading has opened up SFE's market, improved access for retail customers and stimulated an increase in the number of options market-makers."