Singapore
Exchange (SGX) saw record foreign exchange (FX) futures trading volumes in
August, driven by elevated market volatility and increased hedging activity,
according to the exchange operator’s latest monthly statistics report.
SGX Group Reports Record
FX Futures Volume in August amid Market Volatility
Total FX
futures volume on SGX surged 33% year-over-year (YoY) to an all-time high of
5.6 million contracts in August. The exchange’s flagship USD/CNH FX Futures saw the trading volume jump 25% compared to the same month last year, reaching 3.4
million contracts.
Retail
investors were particularly active, with net purchases hitting S$685 million—the highest in 10 months. Institutional investors also increased their trading
activity across various stock segments.
This aligns
with data published by other trading venues over the past month. For instance,
FXSpotStream reported record volumes in August, with average daily volumes
nearly reaching $97 billion, marking a 60% increase compared to the same period
in 2023.
The foreign
exchange market is riding the wave of a weak dollar and a volatile Japanese
yen, as seen on exchanges in Europe and the USA. For example, Cboe’s spot
currency volumes rose to $1.1 trillion compared to $1.02 trillion reported in
July. Additionally, considering there were fewer trading days last month (22 vs
23), the Average Daily Volume Count (ADVC) increased from 44 to nearly 50
billion USD.
Other Numbers
The
volatility also boosted activity in SGX’s securities market, with total
turnover value rising 22% YoY to S$28.8 billion—the highest level since March
2022. The daily average value of the securities (SDAV) climbed 28% to S$1.4 billion.
In the
commodities space, SGX saw broad-based gains, with total derivatives volume up
20% year-over-year to 6.1 million contracts. Petrochemicals volume surged 91%
to a record equivalent of 2.35 million metric tonnes amid growing hedging
demand.
The
exchange’s new three-month Tokyo Overnight Average Rate (TONA) Futures,
launched in late July, continued to gain traction with 37,090 contracts traded
in August.
Despite the
increased trading activity, Singapore’s benchmark Straits Times Index declined
0.4% month-on-month to close at 3,442.93, though it remains up 6.7%
year-to-date.
This article was written by Damian Chmiel at www.financemagnates.com.
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