Derivatives Revenues Drive Profit Growth at SGX

Singapore Exchange (SGX) today reported a net profit of S$363.2 million for the year ending June 30, a 7% increase from the previous year.

This partially driven by a 12% increase in revenues from the exchange’s derivatives business, up to S$339.8 million, meaning that this business line contributed 40% of SGX’s total revenue.

Loh Boon Chye, CEO of SGX, says: “FY2018 was a record milestone in our financial performance as we achieved our highest revenue since listing in 2000 and the highest profit in five years. All three core businesses registered higher revenues. Our securities daily average traded value (SDAV) hit a five-year high, with the number of bond listings and derivatives trading volumes reaching record highs.”

He continues: “Our efforts in the past year to grow our asset classes and markets, advance our securities market and optimise resources have contributed to the strong performance. As we move into the new financial year, our strategy will focus on cementing our position as a multi-asset exchange, while growing our international presence and widening our partnerships and networks.”

Revenue from SGX’s equities and fixed Income businesses was largely flat at S$406.6 million, while market data and connectivity revenue increased 5% to S$98.3 million for the year.

In a release issued today announcing the results SGX says: “In FY2019, SGX will continue to introduce new equities products and services, enhance its SGX Bond Pro, launch new derivative solutions such as its SGX FlexC FX futures and enhanced Titan OTC Pro platform, expand its steel value chain, as well as develop new data business capabilities. Its FX derivatives business continues to grow strongly and is expected to contribute positively to net profit in the next few years. The company also sees an opportunity to develop a digital marketplace in the global freight industry, building on the strengths of the Baltic Exchange and its commodity franchise.”


Galen Stops

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