ANALYSIS: Client-driven demand propels listed derivatives product innovation across APAC

Nikhil Niyogi, group head of investment solutions, prime brokerage and investment solutions at CGS International, said that the pace of exchange-driven product innovation has accelerated in APAC and is clearly demand-led.

"We are seeing this both at the global level through CME Group and closer to home through Singapore Exchange (SGX)," said Niyogi.

Beyond Bitcoin and Ether, CME has expanded into options, launched swap-based event contracts, and introduced Spot-Quoted Futures covering major US equity indices.

"It simplifies access for investors, particularly for Asian investors who are less familiar with traditional futures structures," he said. "CME recorded a 92% year-over-year increase in crypto trading volumes in 2025, with an average daily notional of $13 billion, thus reflecting institutional conviction rather than speculative retail activity."

CGS International, though CGS International Securities Malaysia, was also Malaysia’s first licensed derivatives brokers to offer local traders and investors access to crypto futures via CME Group, which this week became available on a 24/7 basis. This marks the first time cryptocurrency futures became publicly available in Malaysia.

"The common thread is the democratisation of complex instruments," said Niyogi. "For our clients in Singapore and across Southeast Asia, this expanding landscape creates real opportunity — and a growing need for informed guidance on navigating it."

Singapore is at an inflection point in terms of exchange-listed product depth, and CGS International is seeing client interest respond accordingly across both crypto and government bonds.

"On crypto perpetual futures, the significance of SGX's November 2025 launch is less about the product itself and more about the legitimacy of venue," Niyogi said. "Perpetual futures dominate global derivatives volumes, with Asia at the epicentre of this growth, yet these flows have largely been traded on offshore platforms."

SGX's contracts provide a continuous, no-expiry structure favoured by crypto-native communities, combined with the robust clearing and margining standards of listed derivatives.

"For our clients, particularly family offices and institutional accounts that had counterparty concerns around offshore venues, the Monetary Authority of Singapore-regulated, centrally cleared framework is the critical differentiator and one that integrates cleanly into existing portfolio risk frameworks," Niyogi added.

On the fixed income side, CGS International views that the Asia Pacific Government Bond Futures are well timed amid rising allocations to regional sovereign bonds. These contracts provide standardised, US dollar-denominated exposure across key ASEAN markets and tenors, offering a capital-efficient way to manage interest rate risk.

"For CGS International's clients with underlying ASEAN fixed income exposure, this fills a genuine gap: by offering standardised, centrally cleared exposure to defined sovereign curve segments, the new SGX futures provide a streamlined and capital-efficient alternative to managing portfolios of multiple bonds and navigating separate local market rules," Niyogi said.

Taken together, these launches reinforce SGX’s evolution as a multi-asset derivatives hub.

"These developments expand the range of regulated, listed instruments we can deploy for CGS International’s clients across both the digital asset and fixed income spectrums, which is directly aligned with our investment solutions mandate," he said.

SGX launched Asia Pacific government bond futures to widen its coverage in the asset class, as a global bond sell-off triggered by rising oil prices and inflation fears have triggered a wave of rates activity.

CME Group introduced futures contracts linked to Avalanche and Sui, expanding its cryptocurrency derivatives offering.