SGX FX Futures See Robust Start to 2020

Singapore Exchange (SGX) reports strong January FX futures volumes. The exchange notes volume increases in both USD/CNH and USD/INR in particular.

Total notional volume for FX futures during January was US$126 billion, a 17% increase from the $105 billion reported for January 2019. Meanwhile, the volume of contracts traded grew by 21%, from 1.9 million in January 2018 to 2.4 million this year.

The average daily volume of SGX USD/CNH Futures in January rose to US$4.21 billion as trading remained robust and exceeded US$2 billion on all days during the month, despite public holidays and lack of guidance from onshore markets, the exchange notes.

Trading volume on SGX remained above 80% of the global total in January, as participants traded US$84.3 billion (84,271 contracts) during the month. This represented a strong 15% increase year-on-year. With recent developments potentially adding to the negative sentiment around the renminbi, open interest has grown as market participants looked to manage associated risk. Open interest in SGX USD/CNH Futures grew 20% month-on-month and ended January at US$6.4 billion (64,023 contracts). This represented nearly 71% of the open interest across all exchanges with similar offerings, SGX says.

SGX INR/USD Futures trading rose 30% yoy in January, with volume exceeding 1.4 million contracts. In dollar terms, the trading volume translated to US$41 billion (up 29% yoy). The average daily volume jumped to US$1.86 billion in January, up from US$1.63 billion in the full year of 2019.

Julie Ros

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