General Announcement::News Release: SGX Group reports market statistics for June 2022

Issuer & Securities

Issuer/ Manager
SINGAPORE EXCHANGE LIMITED
Stapled Security
No

Announcement Details

Announcement Title
General Announcement
Date &Time of Broadcast
12-Jul-2022 12:16:53
Status
New
Announcement Sub Title
News Release: SGX Group reports market statistics for June 2022
Announcement Reference
SG220712OTHRJ1R4
Submitted By (Co./ Ind. Name)
Jo-Ann
Designation
Senior Associate, Marketing & Communications
Description (Please provide a detailed description of the event in the box below)
- Strong June volume gains round off robust half-year for derivatives
- Continued growth in listings on Asia's leading international bond marketplace

Singapore Exchange (SGX Group) today released its market statistics for June 2022. Derivatives trading activity rose strongly for the month, rounding off a robust half-year as sustained volatility in global markets drove institutional demand for portfolio risk management.

With geopolitical uncertainty, elevated inflation and recession concerns a common theme across Asian markets, SGX Group continues to provide global investors with a trusted and highly liquid toolkit to manage risk over multiple asset classes. Derivatives traded volume increased 24% year-on-year (y-o-y) in June to 23.5 million contracts, the highest in three months. For January-June 2022 - a period where participants were challenged by severe market conditions - volume was up 13% from July-December 2021 at 116.7 million contracts, with derivatives daily average volume (DDAV) rising 18%.

SGX Equity Derivatives traded volume increased 25% y-o-y in June to 16.9 million contracts. Gains were led by SGX FTSE China A50 Index Futures - the world's most liquid international contract for Chinese equities - as volume climbed 20% y-o-y for the month to 9.4 million contracts. SGX Nikkei 225 Index Futures, SGX Nifty 50 Index Futures, SGX MSCI Singapore Index Futures as well as SGX FTSE Taiwan Index Futures also saw volume growth. For January-June 2022, equity derivatives volume was up 10% over the previous six months at 94.7 million contracts.

FX, Commodities Outperform

Foreign exchange (FX) derivatives also stood out in June, with total futures traded volume rising 21% y-o-y to 2.9 million contracts. The volume of SGX USD/CNH Futures climbed 59% y-o-y to 1.5 million, reinforcing the contract's position as the world's most widely traded international RMB futures. For January-June 2022, total FX futures volume gained 26% over the previous half-year to 15.9 million contracts, or a 31% increase to US$943.05 billion on a notional basis. SGX FX offers a leading platform and end-to-end services for global over-the-counter (OTC) and futures participants.

Commodity derivatives volume rose 32% y-o-y in June to 2.9 million contracts, led by a 43% y-o-y gain in benchmark iron ore derivatives to 2.6 million contracts. Petrochemicals volume climbed 30% y-o-y while SGX SICOM rubber futures, the global pricing bellwether for natural rubber, increased 16% y-o-y to 129,185 contracts. For January-June 2022, commodity derivatives volume was up 15% over July-December 2021 at 16.2 million contracts. Demonstrating close alignment with macro developments, the SGX Commodities offering enables market participants to express their views and manage risk efficiently, through iron ore as Asia's strategic raw material and freight as a global economic barometer.

Growth in Bond Listings

On SGX Fixed Income, Asia's leading international bond marketplace, the amount issued from 120 new bond listings was S$33.2 billion, bringing the January-June 2022 total to S$220.2 billion, up 5% over the prior half-year.

Highlights for the month included US$175 million of catastrophe bonds issued by Catahoula II Re Pte Ltd., marking the first catastrophe bonds sponsored by a commercial insurer listed on SGX; Industrial and Commercial Bank of China's carbon-neutrality themed green bonds, totalling US$2.68 billion equivalent across four currencies (USD, EUR, CNY and HKD) and five tranches; as well as the Republic of Indonesia's US$3.25 billion dual-tranche Global Sukuk offering including a US$1.5 billion, 10-year green tranche - the largest green Sukuk tranche ever issued globally.

Securities Market Grows Over First Half

Securities market turnover value stood at S$25.6 billion in June, lifting turnover for January-June 2022 to S$170 billion, up 13% over July-December 2021. Securities daily average value (SDAV) was about S$1.17 billion for the month, bringing the half-year tally 19% higher at S$1.39 billion.

The market turnover value of exchange-traded funds (ETF) rose 6% month-on-month (m-o-m) in June to S$373 million, as turnover for January-June 2022 climbed 3% over July-December 2021. For the first half, turnover of structured warrants and daily leverage certificates (DLC) increased 41%. The benchmark Straits Times Index (STI) was down 4% at 3,102.21 in June, declining 0.7% over the six-month period.

The full market statistics report can be found here: https://www.sgx.com/research-education/historical-data/market-statistics

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