Singapore Exchange (SGX) has announced an annual net profit of $348.6 million, up 9% from the previous year, on revenue of $778.9 million, up 13% from a year earlier.
“SGX has delivered a good set of results for the year. We are conscious of the challenges ahead and the need to address new listings activity and work with our stakeholders towards our common goal of a more liquid and higher-quality securities market,” says Loh Boon Chye, CEO of SGX.
As a result of lower market volatility, the exchange said that securities daily average traded value (SDAV) and total traded value both decreased 4% to $1.1 billion and $274.3 billion respectively. This resulted in a securities revenue decline of $17.6 million or 8% over the year to $209.3 million.
SGX’s derivatives business had another record year with revenue up $87.0 million or 42% to $295.7 million. Total volumes increased 55% over the year to 161.2 million contracts.
“We are optimistic about our business prospects, and will continue to invest in building our platform. The current outlook for the global economy remains uncertain and volatile. We expect this to pose challenges to our Securities market, but support continued growth in the demand for our Derivatives products. Uncertainties in the Chinese market could influence our Derivatives trading volumes, and increasing competition from global exchanges will affect our financial results over time,” says Loh.
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