- Derivatives traded volume for 2024 reaches all-time high
- Straits Times Index delivers strongest performance in over a decade
Singapore Exchange (SGX Group) today released its market statistics for December 2024. SGX Group’s derivatives franchise closed out the year strongly, while the securities market was buoyed by increased participation as Singapore’s benchmark stock index outperformed in ASEAN.
As the U.S. Federal Reserve cut interest rates and China’s policymakers introduced new stimulus measures, more global investors accessed opportunities across equities, foreign exchange (FX) and commodities on SGX Group, driving record volume for key derivative contracts. Derivatives traded volume rose 10% year-on-year (y-o-y) in December to 23.2 million contracts, up 18% for 2024 to an all-time high of 298.4 million contracts. Derivatives daily average volume (DAV) climbed 5% in December to 1.1 million contracts, up 18% for 2024 at 1.2 million contracts.
Key highlights:
- Unrivalled China access: SGX FTSE China A50 Index Futures traded volume gained 14% y-o-y in December to 8.5 million contracts, bringing the tally for 2024 up 17% to 103.2 million contracts – the highest since launch in September 2006. More global institutions are relying on this derivative, the world’s most liquid international futures for Chinese equities, to manage their exposure to the second-biggest economy, following stimulus pledges over the fourth quarter. DAV increased 9% y-o-y in December to 388,424 contracts.
- Record Taiwan futures volume amid continued AI interest: SGX FTSE Taiwan Index Futures volume climbed 11% in 2024 to a record 18.6 million contracts, as a sustained AI investment theme boosted Taiwan’s technology- and semiconductor-heavy equities market. Including contracts covering key markets such as India, Japan and Singapore, total equities index futures traded volume on SGX Equity Derivatives rose 4% y-o-y in December to 13 million contracts, up 8% for 2024 at 167.8 million contracts.
- Hedging demand drives key FX futures contracts: SGX INR/USD FX Futures traded volume jumped 76% y-o-y in December to a record 1.8 million contracts, as global portfolio managers hedge their local equities and bonds positions after hawkish U.S. rate cuts fanned volatility in the Indian rupee and other key Asian currencies. The volume of SGX USD/CNH FX Futures, the world’s most widely traded international renminbi futures, gained 24% y-o-y in December to 3.4 million contracts. DAV rose to more than US$25.2 billion notional for three days leading up to the contract’s roll, ahead of the Fed’s December rate cuts. This lifted total futures volume on SGX FX by 40% y-o-y to 5.6 million contracts, up 44% for 2024 at a record 59.1 million contracts. Over-the-counter (OTC) FX average daily volume (ADV) surged 41% in 2024 to US$129.7 billion.
- Growth in iron ore ecosystem: Total commodities traded volume climbed 31% in 2024 with over 65 million lots cleared, driven by record annual volumes in benchmark iron ore, SGX SICOM rubber as well as petrochemicals. Iron ore derivatives volume gained 32% in 2024 to 5.8 billion metric tonnes, representing about 3.7 times the underlying seaborne iron ore market. In the Aggregate Exposure Report (AER) published by SGX Commodities, market participants in the Managed Money and Physicals categories drove open interest in iron ore futures to more than 1.6 million lots, up 4% y-o-y, in the week to 27 December. The two categories added a combined 100 new iron ore traders during the period, lifting the total by 8% y-o-y to 1,087 traders.
- STI leads ASEAN with strong participation: The bellwether Straits Times Index (STI) advanced 1.3% in December to 3,787.60, notching a 17-year peak during the month to end 2024 up 16.9% as the best performer across ASEAN. The STI delivered total returns of 23.5% for the year, representing its best performance in over a decade. In the cash market, retail participation grew to a two-year high, with continued net buying in real-estate investment trusts (REIT) for a fourth consecutive month amid expectations that interest rates will stay elevated. Total securities market turnover value increased 5% y-o-y in December to S$20 billion, rising 18% for the full year. Securities daily average value (SDAV) was steady y-o-y in December at S$954 million, up 17% for 2024 at S$1.2 billion.
- Debut of world’s first Emerging Asia ETF traded in SGD: Lion Global Investors collaborated with China Merchants Fund Management to list the Lion-China Merchants Emerging Asia Select Index ETF on SGX Securities, offering investors the convenience of accessing four fast-growing markets – Indonesia, Malaysia, Thailand and India – in a single trade. Combined ETF assets under management (AUM) climbed 23% y-o-y in December to S$13.1 billion. AUM in the iShares MSCI AC AxJ Climate Action ETF, the world’s largest Asia ex-Japan climate ETF and the leading climate-focused ETF listed in Asia-Pacific, crossed US$1.2 billion for the first time.
The full market statistics report can be found here.
