Singapore Exchange (SGX) has just released its market statistics for October 2021. The exchange saw strong rise in FX trading driven by increased portfolio hedging by market participants.
The exchange reported growing interest in INR/USD Futures and USD/CNH Futures and attributed the rise to rising inflation concerns in India.
INR/USD Futures were up 14% YoY to 1.3 million contracts and USD/CNH futures traded volume reached 790,720 contracts, 7% higher than the same period the previous year.
SGX stated:
FX market participants bolstered portfolio hedging on key Emerging Asia currencies. SGX INR/USD Futures traded volume rose 14% y-o-y in October to 1.3 million contracts as India’s energy and raw-material costs continued to climb, adding to inflationary concerns. China’s regulatory scrutiny of its technology industry showed signs of easing even as challenges in the property sector lingered. SGX USD/CNH Futures traded volume gained 7% y-o-y to 790,720 contracts, while month-end open interest increased 12% y-o-y to US$10.3 billion.
In October, SGX registered total securities market turnover ofS$24.3 billion, up 5% compared to the same period last year. Securities daily average value (SDAV) was reached 10% YoY increase to S$1.2 billion.
The ETF volume on SGX reached 30% YoY with S$473 million, the highest in three months, the company noted.
The market turnover value of exchange-traded funds (ETF) on SGX climbed 30% y-o-y in October to S$473 million, the highest in three months. There was strong participation across retail and institutional client segments, as well as record turnover for the iShares USD Asia High Yield Bond ETF on the back of S$1 billion of inflows. During the month, SGX and UOB Asset Management (UOBAM) jointly launched the iEdge-UOB APAC Yield Focus Green REIT Index that tracks real-estate investment trusts (REITs) listed across Asia-Pacific with higher dividend yields and positive environmental attributes.
SGX recently announced the addition of Tiger Brokers as a trading member in its securities and derivatives markets, as well as a clearing member and depository agent of The Central Depository (Pte) Limited (CDP).
