Singapore
Trade (SGX) noticed document international trade (FX) futures buying and selling volumes in
August, pushed by elevated market volatility and elevated hedging exercise,
based on the trade operator’s newest month-to-month statistics report.
SGX Group Stories Document
FX Futures Quantity in August amid Market Volatility
Whole FX
futures quantity on SGX surged 33% year-over-year (YoY) to an all-time excessive of
5.6 million contracts in August. The trade’s flagship USD/CNH FX Futures noticed the buying and selling quantity leap 25% in comparison with the identical month final yr, reaching 3.4
million contracts.
Retail
traders have been notably lively, with internet purchases hitting S$685 million –
the very best in 10 months. Institutional traders additionally elevated their buying and selling
exercise throughout numerous inventory segments.
This aligns
with knowledge printed by different buying and selling venues over the previous month. As an example,
FXSpotStream reported document volumes in August, with common every day volumes
almost reaching $97 billion, marking a 60% enhance in comparison with the identical interval
in 2023.
The international
trade market is using the wave of a weak greenback and a unstable Japanese
yen, as seen on exchanges in Europe and the USA. For instance, Cboe’s spot
foreign money volumes rose to $1.1 trillion in comparison with $1.02 trillion reported in
July. Moreover, contemplating there have been fewer buying and selling days final month (22 vs
23), the Common Each day Quantity Depend (ADVC) elevated from 44 to almost 50
billion USD.
Different Numbers
The
volatility additionally boosted exercise in SGX’s securities market, with complete
turnover worth rising 22% YoY to S$28.8 billion – the very best degree since March
2022. The every day common worth of the securities (SDAV) climbed 28% to S$1.4 billion.
Within the
commodities area, SGX noticed broad-based beneficial properties, with complete derivatives quantity up
20% year-over-year to six.1 million contracts. Petrochemicals quantity surged 91%
to a document equal of two.35 million metric tonnes amid rising hedging
demand.
The
trade’s new three-month Tokyo In a single day Common Fee (TONA) Futures,
launched in late July, continued to achieve traction with 37,090 contracts traded
in August.
Regardless of the
elevated buying and selling exercise, Singapore’s benchmark Straits Occasions Index declined
0.4% month-on-month to shut at 3,442.93, although it stays up 6.7%
year-to-date.
This text was written by Damian Chmiel at www.financemagnates.com.
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