Singapore Exchange (SGX Group) today released its market statistics for November 2022. Record foreign exchange (FX) trading activity drove derivatives volume, amid optimism on Asian economies and signs that the U.S. Federal Reserve will slow its pace of interest-rate hikes. 

Total derivatives traded volume rose 30% year-on-year (y-o-y) in November to 23.7 million contracts, the highest since March 2022, while daily average volume (DDAV) climbed 27% y-o-y to 1.1 million. China’s gradual reopening and expanded government support for the country’s property sector fanned risk-on sentiment in Asian equities, currencies as well as commodities, and SGX Group’s multi-asset offering enabled institutional investors to manage their portfolio risk.

In November, the volume of SGX FTSE A50 Index Futures, the world’s most liquid international contract for Chinese equities, increased 24% y-o-y to 9.3 million contracts, while benchmark iron ore derivatives gained 69% y-o-y to 3.2 million contracts. SGX USD/CNH Futures volume more than doubled y-o-y to 2 million contracts or a record-high notional US$200.9 billion, bolstering its position as the most widely traded international RMB futures.

Across the SGX Equity Derivatives suite, total volume rose 17% y-o-y in November to 15.5 million contracts. This included broad-based y-o-y volume gains for SGX FTSE Taiwan Index Futures, SGX MSCI Singapore Index Futures and SGX Nikkei 225 Index Futures.

Hedging activity on SGX FX, Asia’s leading FX over-the-counter (OTC) and futures marketplace, accelerated in November amid U.S. dollar weakness related to the outlook for rates. Total FX futures traded volume surged 104% y-o-y to 4 million contracts – an all-time high. SGX INR/USD Futures volume jumped 81% y-o-y to 1.8 million contracts, with a record average daily turnover of 83,700 contracts. SGX KRW/USD Futures notched a new monthly high of US$3.3 billion notional.

Heightened Commodities Activity

Commodity derivatives volume climbed 57% y-o-y in November to 3.7 million contracts, the highest since March 2022. The volume of SGX SICOM rubber futures, the world’s pricing bellwether for natural rubber, increased 26% y-o-y to 220,880 contracts.

During the month, SGX Commodities further expanded its petrochemical derivatives offering with the addition of Isomer MX swaps/futures contracts, moving one step closer to completing the virtual polyester value chain.

Growing Securities Turnover

Securities market turnover value rose 18% month-on-month (m-o-m) in November to S$27.2 billion, while securities daily average value (SDAV) climbed 7% m-o-m to S$1.2 billion.

Turnover of exchange-traded funds (ETF) gained 18% m-o-m in November to S$389 million. SGX Securities welcomed the listing of theUOBAM Ping An ChiNext ETF, offering investors access to the ChiNext market which hosts leading innovative and fast-growing companies in mainland China.

The Straits Times Index (STI) advanced 6.4% in November to 3,290.49, with dividends boosting total returns to 6.9%. That was the strongest price performance for the benchmark since March 2021, with the broader FTSE Asia Pacific Index generating one of its strongest monthly gains on records.

During the month,NoonTalk Media Limitedjoined Catalist. The Singapore-based media entertainment company specialises in artiste and talent management, multimedia production and event conceptualisation.

On SGX Fixed Income, Asia’s leading international bond marketplace, the amount issued from 33 new bond listings stood at S$3.9 billion in November. During the month, SGX Group launched an initiative to recognisegreen, social and sustainability fixed income securities, enabling investors to more easily identify investments that meet certain criteria at issuance.

The full market statistics report can be found here.