- Deep liquidity and capital efficiencies continue to drive higher on-exchange trading and clearing on SGX FX, alongside rising volumes on its OTC FX platforms
- Flagship SGX USD/CNH Futures and SGX INR/USD Futures are among the topmost traded FX futures contracts globally
SGX FX has been named ‘Best Exchange’ again at the reputable FX Markets Asia Awards – an accolade it has earned every year since the awards were launched in 2018 to recognise the leaders and achievements in the foreign exchange (FX) industry across Asia Pacific.
SGX FX – which hosts the world’s largest and most liquid Asian FX futures exchange – remains the preferred venue for market participants, amid an unprecedented pace of interest rate hikes last year and varying central bank moves across Asia which led to widening yield differentials and increased hedging. Regulatory tailwinds further drove on-exchange trading as market participants sought to improve capital efficiencies through margin offsets on SGX FX.
Lee Beng Hong, Senior Managing Director, Head of Wholesale Markets and Platforms at SGX Group, said, “We are grateful to our customers for their support, and to FX Markets for organising this highly regarded annual awards which spotlights the rising relevance of futures in the US$7.5-trillion-a day global FX market. This recognition is a testament of SGX FX’s global leadership and unique offering of highly liquid Asian FX futures paired with best-in-class OTC FX workflow solutions.”
KC Lam, Global Head of FX and Rates, SGX Group, added, “Our deep liquidity and extensive market depth has attracted new market participants including buyside firms, asset managers, hedge funds and commodity trading advisors. We will continue to innovate and create new opportunities for market participants to invest, manage risk and execute effectively.”
In 2023, SGX FX futures recorded an aggregate of US$2.9 trillion in notional volume, up 40% year-on-year (y-o-y). Aggregate open interest stood at US$13.4 billion, up 24% y-o-y, as at end December. For the first two months of 2024, SGX FX futures total notional volume reached US$535.6 billion, while open interest as at end February was up 72% y-o-y at US$22.7 billion.
Over the years, SGX FX has demonstrated its ability to provide innovative solutions, while helping global customers to navigate the evolving regulatory landscape and dynamic markets. SGX FX’s product shelf has grown from 6 futures contracts in 2013 to nearly 40 today, with US$11 trillion aggregate notional traded as at end 2023. Since its expansion into the OTC FX market with the acquisition of BidFX and MaxxTrader, SGX FX is the only FX futures exchange in Asia with an OTC FX trading venue and a full technology stack that caters to workflow electronification and automation. SGX FX’s OTC FX average daily volume has consistently exceeded US$100 billion in the past few months.
Following the launch of its FX electronic communication network SGX CurrencyNode in September 2022, it has garnered a strong community trading non-deliverable forwards (NDFs) and spot currencies. With the combined strengths of BidFX, MaxxTrader and SGX CurrencyNode, SGX FX has become the leading venue for NDF trading and the market standard for investors who trade emerging markets.
