Singapore Exchange (SGX Group) today released its market statistics for December 2023. Heightened trading activity in commodities and foreign exchange (FX) derivatives lifted volume gains for the month, while steady global institutional interest in key equity index futures contracts brought open interest to a strong close for the final quarter of the year.

Derivatives traded volume rose 6% year-on-year (y-o-y) in December to 21.1 million contracts, with derivatives daily average volume (DDAV) up 13% y-o-y at more than 1 million contracts.

Growing open interest in equity futures

On SGX Equity Derivatives, equity index futures traded volume totalled 12.5 million contracts in December, with robust growth in open interest in benchmark China and Taiwan contracts over the October-to-December quarter. Open interest in SGX FTSE China A50 Index Futures – the world’s most liquid international futures contract for Chinese equities – climbed 17% from the preceding quarter to 933,000 lots or a notional US$11 billion, as mixed views over the outlook for China’s economy bolstered risk management.

SGX FTSE Taiwan Index Futures open interest increased 70% over the October-to-December quarter to 144,000 lots or a notional US$9 billion, with renewed confidence in the U.S. technology sector spurring international investor demand for exposure to Taiwan equities.

The Indian equities market emerged as the fourth-largest globally following a strong second half of 2023, as market capitalisation exceeded US$4 trillion. The volume of GIFT Nifty futures and options rose to 1.5 million contracts in December. Open interest stood at 244,444 contracts or a notional US$10.6 billion, up 7% in the six months since the start of full-scale operations of the NSE IX-SGX GIFT Connect.

Record iron ore derivatives volume

On SGX Commodities, accelerating adoption among financial participants fuelled the iron ore derivatives market’s growth. For 2023, iron ore derivatives volume climbed 43% over 2022 to the equivalent of 4.4 billion metric tonnes – a record high.

Commodity derivatives traded volume increased 45% y-o-y in December to 4.2 million contracts. Benchmark iron ore derivatives volume gained 45% y-o-y, while forward freight agreement (FFA) volume surged 74% y-o-y. The unique SGX Commodities platform enables market participants to risk-manage both cargo and freight on a single liquid and capital-efficient platform.

The volume of SGX SICOM Rubber Futures, the global pricing bellwether for natural rubber, rose 30% y-o-y to 231,331 contracts. Petrochemical derivatives volume more than quadrupled y-o-y.

For the October-to-December quarter, commodity derivatives volume climbed 50% y-o-y to 14.1 million contracts, with gains across iron ore, freight, petrochemicals and rubber derivatives.

World's CNH futures contract of choice

On SGX FX, total FX futures traded volume increased 44% y-o-y in December to 4 million contracts, boosting the tally for the October-to-December quarter by 13% y-o-y to 11.4 million contracts.

SGX USD/CNH Futures volume jumped 93% y-o-y in December to 2.7 million contracts. For 2023, volume rose 59% over 2022 to 25.4 million – reinforcing the contract’s position as the world’s most widely traded international renminbi futures.

For the October-to-December quarter, SGX FX's combined over-the-counter (OTC) and futures average daily volume consistently surpassed US$100 billion, as global customers increasingly recognise its unique offering as the world’s most liquid Asian FX futures exchange with best-in-class OTC workflow solutions.

Singapore equities lead Southeast Asia

Singapore's equities market outperformed Southeast Asian peers in December, with the benchmark Straits Times Index (STI) advancing 5.4% month-on-month (m-o-m) to 3,240.27. Retail investors drove trading activity on SGX Securities for a third consecutive month, with growth across segments including index stocks, real-estate investment trusts (REIT) as well as small- and mid-cap stocks.

Securities daily average value (SDAV) held steady m-o-m in December at S$951 million, climbing 2% y-o-y. With the global interest-rate environment stabilising, the SDAV of REITs increased 2% m-o-m, with net inflows from institutional investors for the first time since January 2023.

The market turnover value of exchange-traded funds (ETF) grew 18% m-o-m in December to S$277 million. Two new ETFs with combined month-end assets under management (AUM) of S$118 million, up from S$56 million at launch, were listed under SGX Group’s product link with Shanghai Stock Exchange, a landmark initiative established in 2023 to promote stock market connectivity between Singapore and China.

During the month, SGX Securities welcomed the listing of 17Live, the first de-SPAC in both Singapore and major Asian markets.

On SGX Fixed Income, Asia’s leading international bond marketplace, the amount issued from 86 new bond listings stood at S$14.7 billion in December. Highlights included the inaugural US$1 billion, five-and-a-half-year Sukuk offering by the Republic of the Philippines; A$675 million Liberty Series 2023-1 Class A auto asset-backed notes and A$968 million Liberty Prime Series 2022-1 Class A1 mortgage-backed notes issued by Liberty Funding Pty Ltd.; and US$500 million green bonds due 2025 by Guangzhou Development District Holding Group Limited.

The full market statistics report can be found here.