The total volume of commodities derivatives jumped by 52% y-o-y in November to 2.3 million contracts, the Singapore Exchange’s (SGX) latest monthly market statistics report reveals.
This came on the back of strong growth in the virtual steel mill suite, the regulator adds.
Other factors that contributed to this include volatility in freight rates, bearish demand conditions and restocking in the physical iron ore market which resulted in higher price hedging activity.
The volume of iron ore derivatives had risen to 54% y-o-y to 1.9 million contracts, while the volume of forward freight agreements (FFA) surged 115% on year to 178,067 contracts.
The higher levels of FFA trading is in response to SGX’s “unique offering for market participants to manage bulk cargo and freight risks with capital efficiencies on a single liquid venue,” SGX elaborates in a Dec 10 regulatory filing.
Meanwhile, China’s exports continued on its growth trajectory in November, despite the mounting pressures facing its property market.
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For one, the FTSE China A50 futures volumes remained strong, with volumes growing by 6% y-o-y to 7.5 million contracts. Similarly, the SGX USD/CNH Futures traded volume rose by 6% y-o-y to 920,559 contracts while month-end open interest gained 11% y-o-y to US$10.2 billion ($13.9 billion).
Conversely, the Indian rupee traded in a narrow range amid worries over the sustainability of India’s equity rally.
As such, the SGX INR/USD Futures traded volume dipped by 16% y-o-y to 968,358 contracts even though month-end open interests soared by 90% y-o-y to US$1.7 billion.
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Overall, SGX notes that trading in cash equities and equity index derivatives accelerated towards the end of the month, especially after the identification of the Omicron Covid-19 variant.
The total securities market turnover value on SGX was up 16% m-o-m at $28.2 billion, but down 22% y-o-y.
The month of November also saw the listing of Daiwa House Logistics Trust on the Mainboard and Mooreast Holdings and Trans-China Automotive Holdings on Catalist.
The exchange also saw the addition of more REIT ETFs (exchange traded funds) such as the CSOP iEdge S-REIT Leaders Index ETF and UOB APAC Green REIT ETF.
Meanwhile, the local bourse issued $36.4 million for the 114 new bond listings in November, a 167% y-o-y surge from the previous year.
These bonds include DBS Bank’s GBP1 billion covered bonds, SPIC Preferred Company No. 1’s US$900 million preference shares and Renesas Electronics Corporation’s US$850 million 5-year senior notes and US$500 million 3-year senior Green notes.
Shares in SGX closed down a cent or 0.11% at $9.44 on Dec 10.
Cover image: file photo
