Singapore Exchange derivatives trading up a quarter in July

In derivatives, trading volume increased 25% year-on-year to 29.3 million contracts, with average daily volume (ADV) up 23% to 1.3 million contracts.

The Asian group’s options and futures volumes were up 58% and 23% while swaps trading volume increased 159% to 8,298 contracts traded in July, compared to same period last year.

In the foreign exchange (FX) segment, SGX INR/USD FX futures trading volume rose 41% year-on-year in July to 2.2 million contracts as participants hedged their risk on the back of uncertainty around India-US trade negotiations.

According to SGX, securities market turnover touched S$33.8 billion (£19.5 billion), up 27% on last July and the highest in three months.

The heightened trading activity can be attributed to the disbursal of S$1.1 billion to asset managers under equity market development programme launched by the Monetary Authority of Singapore in February this year.

Straits Times Index (STI), the benchmark of top 30 stocks on SGX, rose 21% to 4,173.77 last month compared to 3,455.94 in July 2024.

SGX’s chief executive Loh Boon Chye said on Friday he expects the FX business to be a strong driver of performance as the group eyes an annual growth target of 6-8% over the medium term.

His comments came as SGX on Friday presented full year results for the 12 months to the end of June, with operating revenue up 12% to S$1.3 billion.

Hong Kong Exchanges and Clearing reported on Wednesday monthly trading volume up 15%, reflecting a strong month for that group.