The total volume of FX futures traded on SGX in July was 1.7 million, down 8% month-on-month, despite the exchange seeing record volumes in its USD/CNH futures.
Although volumes were down last month compared to June, they were still up 124% year-on-year. The monthly decrease appears to have been driven by a decline in volumes on SGX’s INR/USD futures, with 1.08 million contracts traded, down 23% m-o-m but still up 81% y-o-y.
The bright spot for SGX in July was trading on its USD/CNH futures, as a record $61.5 billion in notional was traded on these contracts, bringing the total volume of these contracts cleared to over $255 billion this year. In total, 614,852 of these contracts were traded last month, up 45% m-o-m and up 308% y-o-y.
According to SGX, this surge in trading activity was caused by heightened US-China trade tensions, which it says drove an increase in firms hedging their RMB exposures.
“SGX USD/CNH Futures continue to provide market participants an opportunity to access a deep liquidity pool and take a position whenever there are market-moving developments outside Asian hours. The overnight (T+1) session reached a new landmark with over US$1.8 billion traded on 3 August (cleared on 6 August) as news on additional trade tariffs broke,” says SGX in a release issued today.