SGX Sees Record Volume in USD/CNH Futures

Singapore Exchange (SGX) set a new volume and open interest records for its USD/CNH futures contract in January.

A total of 297,011 USD/CNH futures contracts with a notional value of  $29 billion traded on SGX’s platform last month. This represents an increase of 175% y-o-y and comes after the exchange reported full-year growth in trading on the contract of 270% in 2017 compared to the previous year.

Meanwhile, the daily open interest for this product reached a new high of 31,278 contracts, with a notional value of $ 3.21 billion, on 26 January.

SGX says that the average daily volume of USD/CNH futures traded during the month was 13,501 contracts, a notional value of $1.35 billion, with trading evenly distributed through the month.

“We saw 19 days with trade volumes worth $1billion or more, with a run of 10 consecutive days with volumes in excess of $1 billion at the start of the new year. January 15 saw the second highest ever daily trading volumes, in excess of $2 billion,” says the exchange operator in a release issued today.

In the same release, SGX comments: “With deeper integration of China within the global financial markets, the need to manage associated risk exposure has continued to increase, as well as the demand for capital efficient and liquid risk management tools such as SGX USD/CNH.  With further opportunities to capitalise on China’s growth story during 2018, including the increasing rate of internalisation of the yuan and MSCI’s inclusion of China A-shares, we expect this demand momentum to continue.”

In December, Profit & Loss took an in-depth look at the drivers behind SGX’s growth story to assess if this momentum can be sustained going forward.

Galen Stops

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