What a year it has been for the Singapore Exchange. Volumes
have soared during the judging period with trading levels up
more than 60% year-on-year. 2015 is set to smash all records
for trading following a surge in trading on the A50 China
On the back of this, SGX takes home the award for Exchange
of the Year - Asia, Australasia and MEA and Global Exchange of
SGX has a strategy to become the gateway to the ASEAN market.
In February 2015, it launched the MSCI Malaysia futures,
expanding its Asian Equity derivatives suite to cover 95% of
Asia’s US$22.7 trillion GDP.
SGX’s MSCI Indonesia futures traded US$4
billion during the period while its MSCI Thailand futures
volume grew 150% year-on-year.
The exchange’s Nifty futures and MSCI India
futures are the only liquid offshore Indian equity index
futures, accounting for 75% of open interest globally.
The exchange has also grown its commodities clearing and OTC
business substantially with strong growth its iron ore clearing
and forward freight volumes.
SGX clears 90% of global seaborne iron ore derivatives,
equivalent to the size of annual physical Chinese imports at
900 million tonnes, and has open interest of more than double
that of Dalian Commodity Exchange.
In May 2015, SGX brought 800 key industry players from 18
countries together in the landmark Singapore Iron Ore Week. SGX
also launched Coking Coal derivatives and complementary iron
ore derivatives during the period.
In October 2014, SGX launched the first Asian electricity
futures market, while its subsidiary the Energy Market
Company, which it acquired in November 2014, created the FOB
Singapore SLlng benchmark for spot LNG. EMC aims to establish
the first Asian physical secondary gas market.
Building on its successful FX suite, SGX launched additional
FX futures pairs in October 2014, providing currency risk
management tools for Chinese, Japanese and ASEAN currencies.
SGX announced in January 2015 a strategic partnership with
leading FX platform EBS to allow its users to execute and clear
SGX Asian FX futures.
SGX’s INR/USD currency futures recorded a daily
turnover of US$1 billion in April 2015, winning a 20% market
share from incumbents DGCX and CME within 18 months of their
As Asia’s pioneer clearing house for OTC
derivatives, SGX continues to be the only exchange to offer
Non-Deliverable IRS in MYR and THB, clearing US$7 billion NDFs
and NDIRS during the period and also extended its OTC
Derivatives clearing service to client transactions.
SGX is the only Asian clearinghouse granted both DCO
recognition by the CFTC (December 2013) and EMIR recognition by
ESMA (April 2015), placing it at the forefront of global
regulatory standards. In January 2015, SGX received CFTC
recognition as a registered FBOT.
In January 2015, SGX admitted Mizuho Securities USA as
Asia’s first remote clearing member, allowing
the exchange to support the clearing of trades for US
customers covered by Dodd Frank.
The company faces competition as the
IntercontinentalExchange opened up its Asian exchange and CCP
in Singapore this year with Eurex planning to follow in the
coming years. However, its recent pace of growth and innovation
will stand it in good stead to fight off the competition and
continue its international expansion.