Singapore Exchange (SGX) Group has announced a notable increase in its derivatives trading activity, attributing the surge to heightened market volatility. The exchange reported that its derivatives daily average volume (DAV) rose by 14% year-on-year in August, reaching 1.2 million contracts. This growth was primarily driven by increased trading in equity index futures, particularly the FTSE China A50 Index Futures, which saw a 24% rise in volume.
The uptick in derivatives trading is significant as it reflects the growing demand for risk management tools amidst uncertain market conditions. SGX Group’s strong performance in this segment underscores its position as a leading derivatives marketplace in Asia. The exchange noted that its total derivatives open interest also increased by 9% to 4.3 million contracts, highlighting sustained investor interest.
Loh Boon Chye, CEO of SGX Group, commented on the results, stating, “Our derivatives business continues to demonstrate resilience and relevance, providing investors with essential tools to manage risk and capture opportunities in a volatile environment.”
The exchange’s robust performance in derivatives is complemented by its efforts to expand its product offerings and enhance market access. SGX Group’s strategic initiatives aim to cater to the evolving needs of global investors, ensuring that it remains a key player in the international financial markets.
Looking ahead, SGX Group plans to further diversify its derivatives portfolio and strengthen its market infrastructure, positioning itself for continued growth in the dynamic trading landscape.
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