SGX Reports 30% YoY Jump in FX Traded Volume for April 2021

Singapore Exchange (SGX) today released its market statistics​ for April 2021, showing a 30% rise year-on-year in FX traded volume.

According to the official statistics, demand to manage portfolio risk across multiple asset classes stayed robust on SGX, even as manufacturing activity in key Asian markets improved, cooling price volatility in equities. Emerging Asia foreign exchange and commodity derivatives also performed strongly.

In particular, derivatives traded volume on SGX rose 5% to 17.5 million contracts in April. SGX's suite of pan-Asia benchmark equity derivatives climbed to 12.3 million, led by an 11% increase in SGX FTSE China A50 Index Futures trading volume to 6.7 million. SGX Nifty 50 Index Futures grew 8% to 2.1 million contracts, while SGX MSCI Singapore Index Futures were up 17% at 1 million.

Total FX traded volume on SGX rose 30% y-o-y in April to 2.2 million contracts, with SGX USD/SGD Futures reaching a single-day record high of 10,521 contracts on 30 April. SGX INR/USD Futures jumped 38% to 1.4 million even as a secondary market government security acquisition programme announced by the Reserve Bank of India fueled a decline in volatility. SGX USD/CNH Futures volume gained 13% to 766,980 contracts amid investor concern over the outlook for China-U.S. relations.

Total commodity volume on SGX climbed 25% y-o-y in April to 2.2 million contracts, with iron ore derivatives up 19% at 1.8 million. Record physical iron ore prices bolstered demand to manage risk via options contracts. Freight derivatives volume continued to be underpinned by tightness in supply chains across dry-bulk markets, with forward freight agreements (FFA) surging 90% to 144,423 contracts. SGX’s unrivalled offering enables market participants to manage bulk cargo and freight risks on a liquid and capital-efficient platform.

Petrochemical derivatives increased 64% y-o-y in April to 4,074 contracts. Over the first four months of 2021, trading volume has exceeded the full-year 2020 tally by more than 25%.

SGX-listed companies continued to tap the equity capital markets with secondary fundraising totaling S$1.3 billion in April, the highest amount since October 2020. Econ Healthcare (Asia) Limited, the largest private nursing home operator by revenue in Singapore and Malaysia, joined Catalist during the month. There were 74 new bond listings, with the amounts issued more than doubling y-o-y to S$37.5 billion.

However, total securities market turnover value on SGX slid 9% y-o-y in April to S$27 billion, while securities daily average value (SDAV) was also 9% lower at S$1.3 billion.

Last month, Fazzaco also reported SGX's market statistics for March 2021​, which reveals a 27% Jump in FX trading volume.