- More adoption by financial participants amid growing iron ore market
- Securities DAV climbs, in contrast to declines across Southeast Asia
Singapore Exchange (SGX Group) today released its market statistics for October 2023. Uncertainties over the path of global interest rates and concerns over China’s economic outlook remained as central themes, spurring trading activity and risk management across multiple asset classes.
Derivatives daily average volume (DDAV) was steady month-on-month (m-o-m) in October at 1.1 million contracts. On SGX Equity Derivatives, index futures traded volume rose 6% m-o-m to 12.4 million contracts, led by a 6% m-o-m increase in SGX FTSE China A50 Index Futures volume. Trading activity grew even during the Golden Week holidays in China, reinforcing the contract’s position as the world’s most liquid international futures for Chinese equities.
SGX FTSE Taiwan Index Futures traded volume gained 17% m-o-m in October to 1.5 million contracts, while SGX MSCI Singapore Index futures volume climbed 16% m-o-m to 1.2 million contracts.
Iron ore activity stays robust
On SGX Commodities, trading activity remained robust, fuelled by accelerating adoption among financial participants amid a growing iron ore market. Benchmark iron ore derivatives volume increased 56% year-on-year (y-o-y) in October to almost 4 million contracts, while forward freight agreement (FFA) volume gained 58% y-o-y to 189,504 contracts. The unique SGX Commodities platform enables institutional investors to risk-manage both cargo and freight on a single liquid and capital-efficient platform.
Total commodity derivatives traded volume rose 57% y-o-y in October to 4.5 million contracts. Petrochemicals volume more than doubled y-o-y to 7,185 contracts, even as SGX Commodities further expanded its risk-management offering. During the month, two new ammonia swaps and futures contracts were listed, referencing the Argus Ammonia FOB Middle East and CFR East Asia pricing points.
SGX SICOM Rubber futures volume climbed 85% y-o-y to 257,900 contracts, as improving market fundamentals attracted more hedging and trading demand. The contract is the global pricing bellwether for natural rubber.
FX futures sustain growth after recent records
On SGX FX, total foreign exchange (FX) futures traded volume rose 1% y-o-y in October to 3.3 million contracts. The volume of SGX USD/CNH Futures – the world’s most widely traded international renminbi futures – increased 33% y-o-y to 2.1 million contracts.
SGX INR/USD Futures volume was lower at 993,362 contracts amid subdued volatility in the Indian rupee. Month-end open interest in the contract remained strong, up 19% y-o-y and 5% m-o-m at a notional US$2.22 billion.
Singapore SDAV leads region
On SGX Securities, total securities market turnover value gained 14% m-o-m in October to S$19.7 billion, while securities daily average value (SDAV) climbed 4% m-o-m to S$897 million – in contrast to declines across Southeast Asian markets. The benchmark Straits Times Index (STI) was down 4.7% m-o-m at 3,067.74.
The market turnover value of exchange-traded funds (ETF) rose 47% m-o-m in October to S$323 million. Concern over heightened conflict in the Middle East drove investors to safe-haven assets such as gold, with turnover in the SPDR® Gold Shares ETF up 170% m-o-m. The iShares MSCI Asia ex-Japan Climate Action ETF, Singapore’s largest equity ETF at its listing in September, saw net creations since inception of S$600 million through end-October.
More listings
Turnover of structured warrants and daily leverage certificates (DLC) increased 6% m-o-m in October to S$625 million. There were 46 new listings across DLCs, structured warrants and structured certificates, bringing the total number of outstanding products, listed on more than 60 underlying single stocks or indices, to a record high of 615.
During the month, SGX Securities welcomed Sheffield Green Ltd. and Niks Professional Ltd. to Catalist. Sheffield Green is a human resource service provider for EPCI (engineering, procurement, construction and installation) works in the renewable-energy industry. Niks Professional is a dermatology and aesthetic medical services provider.
On SGX Fixed Income, the amount issued from 93 new bond listings stood at S$21.8 billion in October. Highlights included Industrial and Commercial Bank of China’s US$2.03 billion equivalent, four-tranche “Belt and Road Initiative” themed multi-currency green bond offering; the Korea Development Bank’s US$2 billion four-tranche bond offering; as well as Industrial Bank of Korea’s US$600 million gender-equality themed social bond.
The full market statistics report can be found here.
