Singapore Exchange (SGX), has announced its financial results for August 2021. In the report, the exchange states that the volumes for USD/CNH futures increased by almost 12% year-on-year.
The financial results from the firm also show that the total volumes for the INR/USD futures increased to 1.1 million contracts in the month of August 2021. This is a 9% increase compared to August 2021.
Growth in Securities Market
SGX’s report also stated that the securities market turnover has also grown steadily during the month. The total commodity derivative volumes increased by 10% compared to the same period last year to reach 2.6 million contracts. This increase was inclusive of iron ore.
SGX also stated that the volumes pertaining to Petrochemicals increased to 3407 contracts last month, which is a 48% increase compared to August 2021.
Commenting on the results, the firm stated, “USD/CNH Futures climbed 12% y-o-y to 812,929. The SGX USD/CNH Futures is the world’s most widely traded international RMB futures contract and achieved a month-end open interest of US$11.3 billion, a record high. The volume of SGX INR/USD Futures climbed 9% y-o-y to 1.1 million contracts, lifting total foreign exchange (FX) futures traded volume on SGX by 12% y-o-y to 2 million contracts.”
In July 2021, the exchange also posted a significant increase in the FX volumes. Recently, the firm partnered with Shanxi Securities International Futures, which became a Derivatives Trading Member.
In June 2021, the exchange also added Synergy Futures Limited as a trading member. These developments show a significant growth in the firm’s activities and an expansion of the company.
Increase in Institutional Investors
In the release, the exchange also mentioned there was significant growth in developing countries in Asia. This triggered the rise in derivatives trading for iron ore during the month.
The announcement also mentioned that institutional investors were expanding their portfolio risk management because of the uncertain markets in China. In August 2021, the trading volumes for FTSE China A50 Index Futures increased by 4% compared to August 2021, to reach 8.9 million contracts.
Iron ore derivatives also increased 4% year-on-year during the month to reach 2.2 million contracts.