·Record commodity, FX derivatives activity in March caps strong first quarter

·Retail net buying increases across all stock segments

Singapore Exchange (SGX Group) today released its market statistics for March 2024. Record trading activity in commodity and foreign exchange (FX) derivatives during the month drove volumes for the quarter, while retail net buying increased across all stock segments.

Derivatives traded volume rose 10% month-on-month (m-o-m) in March to 24 million contracts. For the January-to-March quarter, volume climbed to 70.4 million contracts, 12% higher over the same period last year. Daily average volume (DAV) for the quarter gained 14% year-on-year (y-o-y) to 1.2 million contracts. The average fee per contract for equity, currency and commodity derivatives for January-to-March was S$1.54.

Trusted equities risk-management offering

On SGX Equity Derivatives, the SGX FTSE China A50 Index Futures contract remained the world’s most liquid international futures for Chinese equities, enabling market participants to manage risk amid a focus on the growth outlook for Asia’s leading economy. Traded volume totalled 24.2 million contracts in January-to-March, up 7% y-o-y.

SGX FTSE Taiwan Index Futures volume rose 47% m-o-m in March to 1.8 million contracts, the highest since January 2021. This brought total volume for the January-to-March quarter to 4.7 million contracts, up 7% y-o-y. Fuelled by global demand for AI technology, Taiwan’s semiconductor-centric equities market is gaining significant traction among institutional investors.

GIFT Nifty 50 Futures DAV climbed to 96,978 contracts in March – the highest since the NSE IX-SGX GIFT Connect started full-scale operations in July 2023 – as global funds continued to be drawn to India. SGX MSCI Singapore Index Futures volume climbed 1% y-o-y during the quarter.

Record participation in benchmark rubber futures

On SGX Commodities, total derivatives traded volume rose 32% m-o-m in March to a record-high 6.4 million contracts. This brought total volume for the January-to-March quarter to 16.5 million contracts, up 56% y-o-y.

Growth was observed across a broad range of products, with DAV for SGX SICOM Rubber Futures – the global pricing bellwether for natural rubber – jumping to a record for both March and the first quarter, including a new single-day volume high of 43,538 lots on 18 March. Growing financialisation in the U.S. and Europe, alongside a physical market transiting out of prolonged oversupply, continued to attract fresh participation.

DAV for SGX petrochemicals derivatives also surged to a record for both March and the first quarter. Paraxylene (PX) volume grew strongly on more hedging, with healthy PX-naphtha margins as well as higher cross-exchange arbitrage activity.

Benchmark iron ore derivatives volume rose 32% m-o-m in March to 5.7 million contracts, an all-time high, amid increased hedging as physical prices fell. This lifted total volume for the quarter by 59% y-o-y to 14.7 million contracts, also a record, on the back of a broadening participant base. Forward freight derivatives volume climbed 17% m-o-m in March to 263,452 contracts, while the quarterly tally gained 15% y-o-y. The unique SGX Commodities offering enables market participants to risk-manage both cargo and freight on a single liquid and capital-efficient platform.

CNH futures lead record FX gains

On SGX FX, total futures traded volume rose 20% m-o-m in March to a record-high 4.3 million contracts on heightened portfolio risk management. This brought total volume for the January-to-March quarter to 12.1 million contracts, up 30% y-o-y.

Gains were led by SGX USD/CNH FX Futures, as volume climbed 36% m-o-m in March to 2.6 million contracts, lifting total volume for the quarter by 47% y-o-y. During the month, the world’s most widely traded international renminbi futures contract registered record open interest of US$18.5 billion. SGX INR/USD FX Futures volume increased 3% m-o-m in March to 1.4 million contracts, while the quarterly tally was up 4% y-o-y.

Securities trading activity grows

On SGX Securities, the benchmark Straits Times Index (STI) advanced 2.6% m-o-m in March to 3,224.01. Securities daily average value (SDAV) for the month reached S$1.2 billion, rising 21% in January-to-March over the previous period last year (q-o-q). Growth was driven by active trading around earnings releases and rebalancing of indices during the quarter, while retail net buying increased across all stock segments. The average securities clearing fee for January-to-March was 2.47 basis points.

The market turnover value of exchange-traded funds (ETF) gained 9% m-o-m in March to S$306 million, while turnover of Structured Warrants and Daily Leverage Certificates (DLC) grew 34% m-o-m to S$534 million.

During the month, SGX Securities welcomed the listing of Phillip-China Universal MSCI China A 50 Connect ETF. The new product builds on the growing suite of China-focused equity funds offered through the ETF link between SGX Group and Shanghai Stock Exchange (SSE).

On SGX Fixed Income, Asia’s leading international bond marketplace, the amount issued from 112 new bond listings rose 17% m-o-m in March to S$34 billion. Highlights included Sumitomo Mitsui Trust Bank Limited’s US$2.25 billion three-tranche offering, NBN Co. Limited’s EUR1.3 billion dual-tranche green bonds and Kansai Paint’s JPY100 billion dual-tranche zero coupon convertible bonds. Over the January-to-March quarter, the amount issued from 269 new bond listings climbed 12% y-o-y to S$85.5 billion.

In March, SGX Group announced plans to introduce short-term interest rate futures linked to the Singapore Overnight Rate Average (SORA) and Tokyo Overnight Average Rate (TONA), as global investors increasingly seek more transparent and cost-effective tools to hedge and trade fluctuations in interest rates. Three-month SORA and TONA Futures are targeted to be launched in the second half of this year, subject to regulatory approval. The contracts build on SGX Group’s suite of long-term interest rate futures, which have attracted diverse international market participants. 

The full market statistics report can be found here.