SGX Group Reports 16% YoY Jump in July FX Futures Volume

Singapore Exchange (SGX Group) today released its market statistics for July 2022. Growth in iron ore trading activity lifted commodity derivatives volume to a four-month high, while secondary fundraising increased despite challenging market conditions.

Derivatives traded volume across multiple asset classes rose 1% year-on-year (y-o-y) in July to 20.5 million contracts, with derivatives daily average volume (DDAV) up 4% y-o-y. Commodity derivatives volume climbed 57% y-o-y to 3.6 million contracts, the highest since March.

Benchmark iron ore derivatives volume gained 68% y-o-y to 3.3 million contracts on the back of heightened volatility, as market participants reacted to developments in China's property sector. The volume of SGX SICOM rubber futures, the world's pricing bellwether for natural rubber, increased 18% y-o-y to 148,290 contracts.

Foreign exchange (FX) futures volume on SGX FX rose 16% y-o-y in July to 2.5 million contracts, or US$149 billion on a notional basis. The volume of SGX USD/CNH Futures – the most widely traded international RMB futures – climbed 34% y-o-y to 1.1 million contracts on increased risk-management demand, as investors focused on China's economic outlook.

SGX Equity Derivatives volumes declined on reduced volatility, with key stock indices buoyed by steady corporate earnings and easing expectations for further significant U.S. interest-rate hikes. SGX FTSE China A50 Index Futures volume dropped 17% y-o-y and SGX MSCI Singapore Index Futures volume fell 13% y-o-y. Among the gainers, SGX Nifty 50 Index Futures volume grew 13% y-o-y in July to 2.3 million contracts, while SGX Nikkei 225 Index Futures volume was up 7% y-o-y at 1.1 million contracts.