Tag: SGX

SGX

FX Volumes Dip on SGX Despite USD/CNH Surge

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 trading 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.

Derivatives Revenues Drive Profit Growth at SGX

Singapore Exchange (SGX) today reported a net profit of S$363.2 million for the year ending June 30, a 7% increase from the previous year.

This partially driven by a 12% increase in revenues from the exchange’s derivatives business, up to S$339.8 million, meaning that this business line contributed 40% of SGX’s total revenue.

Loh Boon Chye, CEO of SGX, says: “FY2018 was a record milestone in our financial performance as we achieved our highest revenue since listing in 2000 and the highest profit in five years.

In the FICC of It

In this week’s In the FICC of It podcast, Colin Lambert apologises to the English nation and Galen Stops talks about the needs of a millennial.
They also discuss the week’s news from the FX world including SGX launching futurised OTC products and LCH going live with deliverable FX options clearing, as well as deliberate upon how hedge fund performance is measured; US regulators’ attitudes to cryptocurrencies; and the latest blow to the desktop terminal industry. They close out with a quote from their favourite profession – the legal industry – which rather aptly reinforces something Colin Lambert has been saying for some years – and let’s face it, if he says enough at some stage a lawyer somewhere will have to agree, it’s the law of averages!
In case you missed some of the original coverage this week, you can catch up here:
SGX Launches “Futurised” OTC FX Product
LCH Goes Live with Deliverable FX Options Clearing
US Regulators Shift Attitudes Regarding Cryptocurrencies
Hedge Funds Suffer in June: BarclayHedge
And Finally…(subscription required)

SGX: Doing Things Differently

“It’s not rocket science, but it is a different approach compared to other exchanges,” says KC Lam, head of FX and rates at SGX, when discussing the exchange’s new FlexC FX futures, which aim to “futurise” certain OTC FX product offerings.

This is, of course, a reference to the recent product initiatives launched by various exchange groups in an attempt to bridge the gap between OTC and listed FX trading.

While Eurex has launched rolling spot futures, which mimic the trading of OTC FX spot contracts, combined with the daily usage of a tom-next (T/N) swap in order to roll over the value date of the spot position, and CME has launched CME Link, spot FX basis spreads offered on Globex to create a central limit order book (CLOB) between the OTC spot FX and CME FX futures markets, SGX is indeed taking a very different approach.

SGX Launches “Futurised” OTC FX Product

Singapore Exchange (SGX), is launching a new product, SGX FlexC FX Futures, with the aim of “futurising” certain OTC FX product offerings.

Targeted for launch on August 27, SGX FlexC FX Futures – developed in consultation with market participants – enable bilateral trades that are privately negotiated with tailored expiration dates to be registered and cleared like a standard SGX FX futures contract. This feature will be available for INR/USD, KRW/USD, TWD/USD, USD/CNH and USD/SGD contracts.

Michael Syn, head of derivatives at SGX, says: “Access to counterparty credit, especially for tenors longer than spot, is increasingly scarce and expensive in the OTC FX markets.

SGX Posts Continued FX Growth

SGX has reported that 1.09 million FX futures contracts were traded on its platform last month, up 88% compared to April 2017.

This also represents the fourth consecutive month that the number FX contracts on the exchange have exceeded over 1 million.

The cumulative open interest for all FX contracts is up 37% m-o-m and 74% y-o-y. In April, SGX also reached the milestone of $ 1 trillion worth of cumulative notional trading in INR/USD and USD/CNH futures since their inception in 2013 and 2014, respectively.

SGX Invests in Cobalt

Cobalt has secured a strategic investment from Singapore Exchange (SGX).

In a release issued today, Cobalt says that SGX’s investment will support the continued expansion of its footprint into the FX space, accelerating the technology development and build out of its team.

Cobalt uses distributed ledger technology (DLT) to provide shared back and middle office infrastructure. By creating a shared view of trade data, Cobalt looks to free up back and middle office resources from multiple layers of reconciliation, creating a “golden” portfolio of FX transactions from which to provide multiple services.

SGX FX Volumes Double YoY in February

The aggregate volume for SGX FX futures stayed above 1 million contracts, or approximately US$ 53 billion, for the full month, representing year-on-year (y-o-y) growth of 99.3%.

The average daily volume (ADV) of FX contracts traded on the exchange in February was 1.17 million. On a Year-to-Date (YTD) basis, this represents an increase of 123% over the corresponding period in 2017.

SGX’s USD/CNH futures saw a pick-up in activity last month, with 10 successive days of trading in excess of $1 billion, including two consecutive days of trading above $2 billion.

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.

Year-End Volumes Showing MoM Dip

Thomson Reuters and Singapore Exchange have today released year-end FX trading volumes, which each show year-end dips from the previous month. TR reports total average daily volume of foreign exchange trading across its platforms in December totalled $392 billion, a dip from the $397 billion reported in November. Average daily volume for spot trading was $88 billion, down from $94 billion in November. This total reflects trading volumes on TR’s Matching and FXall in all transaction types, including spot, forwards, swaps, options and non-deliverable forwards.