• Derivatives volume rises as global investors turn to our marketplaces to manage risk amid heightened volatility
• SDAV growth and STI outpace peers across Southeast Asia

Singapore Exchange (SGX Group) today released its market statistics for July 2024. Activity in SGX Group’s marketplaces increased across asset classes as global investors managed portfolio risks in response to manifold economic and political developments during a volatile month. Derivatives traded volume gained 15% year-on-year (y-o-y) to 23.5 million contracts.

Towards the end of July, SGX Group’s Japan-access derivatives suite enabled market participants to manage risk around Japan’s monetary policy decisions. As the Bank of Japan (BOJ) raised its benchmark interest rate and announced plans to slow its monthly bond purchases, the volume of SGX three-month Tokyo Overnight Average (TONA) Futures topped 532 lots following the contract’s debut on 29 July, while month-end open interest (OI) in SGX Mini Japanese Government Bond (JGB) Futures rose 21% month-on-month (m-o-m). In addition, the pioneering SGX Nikkei 225 Index Futures saw 52,504 lots (US$6.8 billion notional) traded on 31 July – up 36% over the daily average for the month.

Key highlights:

• Record FX futures volume: total futures traded volume on SGX FX climbed 44% y-o-y in July to 4.8 million contracts, an all-time high. Gains were led by SGX USD/CNH FX Futures – the world’s most widely traded international renminbi futures – with volume up 40% y-o-y at a record 2.9 million contracts, while SGX INR/USD FX Futures volume increased 48% y-o-y to 1.6 million contracts. Anticipation of rate decisions by the BOJ and the Federal Reserve, as well as uncertainties over the U.S. presidential elections, fuelled volatility and bolstered portfolio hedging.
• New interest-rate hedging tools with focus on central banks: SGX Fixed Income launched three-month TONA and Singapore Overnight Rate Average (SORA) Futures on 29 July, as investors seek more accessible and cost-effective tools to hedge and trade fluctuations in interest rates. The contracts build upon SGX’s offering of long-term interest rate futures co...