General Announcement::News Release: SGX reports market statistics for February 2021

Issuer & Securities

Issuer/ Manager
SINGAPORE EXCHANGE LIMITED
Securities
SINGAPORE EXCHANGE LIMITED - SG1J26887955 - S68
Stapled Security
No

Announcement Details

Announcement Title
General Announcement
Date &Time of Broadcast
10-Mar-2021 12:16:17
Status
New
Announcement Sub Title
News Release: SGX reports market statistics for February 2021
Announcement Reference
SG210310OTHRM2EE
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)
- Derivatives average volume rises
- Investor demand for SGX-listed ETFs stays robust

Singapore Exchange (SGX) today released its market statistics for February 2021. Daily derivatives volume increased while investor demand for exchange-traded funds (ETF) stayed robust.

Derivatives daily average volume (DAV) on SGX rose 6.2% month-on-month (m-o-m) in February to 1.1 million contracts, even as total traded volume was lower year-on-year (y-o-y) at 17.7 million due to fewer trading days in onshore markets. Several markets across East Asia were closed for extended Lunar New Year holidays in February, a period that was marked in January last year. SGX's derivatives platform was open and available through these holidays.

Among SGX's suite of pan-Asia benchmark equity derivatives, SGX FTSE China A50 Index Futures DAV stood at 485,141 contracts in February, up from 437,671 in the previous month, while SGX FTSE Taiwan Index Futures DAV was 104,415 contracts, up from 99,515.

SGX Nifty 50 Index Futures traded volume climbed 4% m-o-m in February to almost 2 million contracts, while SGX MSCI Singapore Index Futures gained 3% to 989,478 - each reaching a three-month high.

Total foreign exchange (FX) futures trading volume on SGX, Asia's biggest FX futures marketplace, grew 7% m-o-m in February to 2.3 million contracts. This was led by a 22% jump in SGX INR/USD Futures as market volatility took a turn higher. Trading volume of SGX USD/CNH Futures, the world's most widely traded international RMB futures, was 15% lower at 717,806 contracts amid the Lunar New Year holidays in China.

Commodities Records

In commodity markets, SGX's freight derivatives set record open interest in February on heightened demand to manage price risk. Forward freight agreement (FFA) traded volume surged 80% y-o-y to 150,601 contracts amid a rally in shipping rates. With about 60% global market share in FFAs, SGX offers market participants a liquid and capital-efficient venue to manage bulk cargo and freight risks.

SGX petrochemical derivatives volume also notched a new high, more than doubling y-o-y in February to 1.45 million metric tonnes (MT) on the back of increased hedging and record open interest. Paraxylene traded volume surpassed 800,000 MT for a second consecutive month, while the volume of paraxylene-naphtha spreads gained on improved margins for paraxylene producers.

Iron ore derivatives traded volume declined 12% m-o-m in February to 1.4 million contracts amid the Lunar New Year holidays. SGX SICOM rubber futures, the global pricing bellwether for natural rubber, climbed 12% to 146,291 contracts.

Securities Market Activity

Securities daily average value (SDAV) on SGX was down 1% y-o-y in February at S$1.4 billion, as total market turnover value slid 6% to S$25.8 billion. The benchmark Straits Times Index (STI) was up 1.6% m-o-m at 2,949.04 for a fourth straight month of gains. The STI generated a 1.7% total return in February, bringing total returns for the first two months of 2021 to 3.9%.

The market turnover value of ETFs rose 40% y-o-y in February to S$499 million amid increased investor adoption. During the month, new daily leverage certificates (DLC) and structured warrants were listed on SGX, offering exposure to the Hang Seng TECH Index.

SGX welcomed multidisciplinary specialist healthcare group Livingstone Health Holdings Limited as well as fintech group MC Payment Limited to Catalist in February. Homegrown Livingstone Health joins a growing listed healthcare cluster on the exchange, while MC Payment's listing was the first for a digital-payments company in Singapore.

Asia's primary bond market saw activity picking up towards the end of February on broad regional participation. On SGX, Asia's largest international bond marketplace, there were 63 new bond listings that raised S$31.5 billion.

The full market statistics report can be found here.

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