Singapore Exchange (SGX) today released its market statistics for February 2022. Derivatives volume surged as heightened price volatility and concern over inflation boosted risk-management activity. The Russia-Ukraine crisis escalated towards month-end, adding to challenges facing commodity markets and supply chains.

Derivatives daily average volume (DAV) on SGX rose to 1.06 million contracts in February, the highest since March 2020. On a year-on-year (y-o-y) basis, total derivatives traded volume climbed 5% to 18.6 million contracts. Equity index futures volume increased 5% y-o-y to 13.4 million contracts, led by a 33% gain in SGX Nifty 50 Index Futures volume. SGX MSCI Singapore Index Futures traded volume increased 10% y-o-y, while SGX Nikkei 225 Index Futures volume was up 4% y-o-y.

Managing Cargo and Freight Risks

As the crisis over Ukraine exacerbated volatility across key global commodities including iron ore, SGX’s unique offering enabled market participants to manage both cargo and freight risks on a single liquid and capital-efficient platform.

Commodity derivatives traded volume on SGX rose 36% y-o-y in February to 2.5 million contracts, with the volume of benchmark iron ore contracts up 41% y-o-y. Forward freight agreements (FFA) volume climbed 31% y-o-y to a record 196,634 contracts, with FFA options volume also reaching a new high.

In foreign exchange (FX), SGX USD/CNH Futures traded volume gained 15% y-o-y in February to 823,524 contracts, with open interest hitting a record US$12.4 billion during the month. The CNH or offshore RMB is increasingly being adopted as a safe-haven currency amid heightened risk aversion, and the SGX contract is the world’s most widely traded CNH futures. Total FX futures volume on SGX – Asia’s leading and most comprehensive marketplace for FX – stood at US$107.8 billion, with month-end open interest up 56% y-o-y at US$13.9 billion.

Higher Securities Market Activity

Securities daily average value (SDAV) on SGX rose 36% month-on-month (m-o-m) in February to S$1.6 billion, the highest since March 2021. Total securities market turnover value climbed 16% m-o-m to S$29.6 billion. Companies including Rex International Holding Ltd. and Samudera Shipping Line Ltd. were among the top performers as well as most active stocks during the month.

The benchmark Straits Times Index (STI) slid 0.2% in February to 3,242.24. However, its total return over the first two months of 2022 was 4%, compared with a 2.8% return for the FTSE ASEAN All-share Index, a 4.5% decline for the FTSE Asia Pacific Index and a 6.6% drop for the FTSE All-World Index.

The market turnover value of structured warrants and daily leverage certificates (DLC) on SGX gained 17% m-o-m in February to S$513 million. SGX welcomed UBS as a new DLC issuer, offering investors more choice to hedge and capture investment opportunities in Asia.

Increased Fundraising on SGX

During the month, LS 2 Holdings Ltd., a Singapore-based integrated environmental services provider, joined Catalist. SGX-listed companies continued to tap the equity capital markets with secondary funds raised of S$244.8 million in February, up 31% y-o-y.

The amount issued from 101 new bond listings on SGX – Asia’s leading international bond marketplace – gained 7% y-o-y in February to S$33.6 billion. These included Mizuho Financial Group’s US$1.85 billion three-tranche senior notes offering featuring a US$500 million green tranche; Hanwha Life Insurance’s US$750 million Tier 2 Subordinated Sustainability Securities due 2032; Kookmin Bank’s US$700 million dual-tranche senior unsecured sustainability notes; and Kia Corp.’s US$700 million dual-tranche green bonds.

The full market statistics report can be foundhere.