Trading volumes on SGX’s FX futures hit an all-time in May, with $111.5 billion in notional value and over 1.84 million aggregate contracts traded.
Year-on-year, May’s volumes represent a 49% growth in notional value and a 10% growth in aggregate contracts. SGX also saw a record for single day trading volume this month, with more than $ 7.5 billion traded on May 10.
SGX attributes high trading volumes to a surge of volatility into select emerging markets, as a result of geopolitical tension. Specifically, the trade war between China and the US has been accredited as to bringing back volatility to a market which SGX states has been “quiet” over the past few months.
USD/CNH futures accounted for $82.5 billion of the notional value of FX contracts traded on SGX’s platform in May, a 131% year-on-year increase. The notional ADV of these contracts traded was $3.93 billion last month, the highest it has ever been. On May 10th, immediately after the newswires reported that US-China talks have broken down, SGX set a new single day notional record of $6.18 billion for USD/CNH futures.
Last month, the notional value of INR/USD contracts traded on SGX was $28 billion, accounting for 974,106 contracts. This translates to an increase of 8% in contracts traded from April. SGX notes that these numbers come after prime minister Narendra Modi secured another term with a landslide victory in polls