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- Deep derivatives liquidity across multiple asset classes through Lunar New Year
- Securities market turnover grows despite fewer trading days
Singapore Exchange (SGX Group) today released its market statistics for February 2024. Derivatives volume rose across multiple asset classes as global market participants leaned on SGX Group’s trusted marketplace for continued access through the extended Lunar New Year holidays in Asia.
Derivatives daily average volume (DAV) increased 24% year-on-year (y-o-y) in February to 1.3 million contracts, up 10% on a month-on-month (m-o-m) basis. Total derivatives traded volume climbed 9% y-o-y to 21.9 million contracts.
Equity market participants were able to benefit from unfettered access on SGX Equity Derivatives, with deep liquidity observed in China and Taiwan index futures. The volume of SGX FTSE China A50 Index Futures gained 8% y-o-y to 8 million contracts, with DAV rising to 534,972 lots, the highest since August 2020. The contract is the world’s most liquid international futures for Chinese equities. SGX FTSE Taiwan Index Futures volume was steady y-o-y at 1.3 million contracts. With positive news flow from the global technology sector through February, investors were able to continue risk-managing Taiwan equities even with local markets closed.
SGX MSCI Singapore Index Futures volume increased 10% y-o-y in February to 1.3 million contracts, while GIFT Nifty Futures volume climbed 3.3% m-o-m to 1.8 million contracts.
Broad-based gains in commodities
Commodity derivatives were a standout in February, as traded volume rose 39% y-o-y in February to 4.9 million contracts. Benchmark iron ore futures volume increased 41% y-o-y to 4.3 million contracts, with a single-day record of 47.6 million metric tonnes traded on 21 February. Volumes were particularly strong post-Lunar New Year holidays amid robust risk-management activity.
Forward freight derivatives volume climbed 16% y-o-y to 224,242 contracts, with open interest also rising on the back of higher freight rates, especially for Capesize due to increased iron ore flows. The unique SGX Commodities offering enables market participants to risk-manage both cargo and freight on a single liquid and capital-efficient platform.
The volume of SGX SICOM Rubber Futures, the global pricing bellwether for natural rubber, gained 41% y-o-y to 253,535 contracts. DAV reached 66,800 metric tonnes, the second-highest monthly level on record. Petrochemical derivatives volume more than trebled y-o-y, bringing volume for the first two months of 2024 to 10.6 million metric tons – almost matching the total for FY2023.
Record INR volume and open interest
On SGX FX, foreign exchange (FX) futures volume rose 22% y-o-y in February to 3.6 million contracts. Gains were led by SGX INR/USD Futures, with volume reaching an all-time high of a notional US$5.5 billion (228,091 lots) on 15 February, while open interest climbed to a record US$4.85 billion (201,213 lots) on 16 February. The volume of SGX USD/CNH Futures – the world’s most widely traded international renminbi futures – increased 27% y-o-y to 1.9 million contracts.
Securities turnover grows
Securities daily average value (SDAV) on SGX Securities rose 34% m-o-m in February to S$1.3 billion. Total securities market turnover value increased 22% m-o-m to S$25 billion, despite fewer trading days compared with January. Singapore’s securities market remained the second most-traded in Southeast Asia. Retail led the jump in activity, with the number of retail accounts that traded in February up 34% m-o-m at a 12-month high.
During the month, SGX Securities welcomed healthcare service provider Singapore Institute of Advanced Medicine Holdings Ltd. (SAM Holdings) to Catalist.
On SGX Fixed Income, Asia’s leading international bond marketplace, the amount issued from 99 new bond listings gained 28% m-o-m in February to S$29 billion. Highlights included The Korea Development Bank’s US$3 billion dual-tranche offering, Rakuten Group’s US$1.8 billion three-year senior notes as well as Korea Electric Power Corporation’s US$1.2 billion three-year senior notes. Other notable listings include Prologis, L.P.’s inaugural CNY1.5 billion offshore renminbi bond and three tranches of U.S. dollar-denominated Insurance Linked Securities issued by Phoenix 2 Re Pte Ltd.
The full market statistics report can be found here.
