Singapore Exchange (SGX Group) released its market statistics for September 2024. Securities trading activity grew significantly as easing monetary policies and China’s stimulus package fuelled optimism and portfolio repositioning.

With China’s economic outlook still driving regional volatility, SGX Group remained the venue of choice for market participants managing Asia exposures with unrivalled efficiency. Derivatives traded volume achieved single-day records over two consecutive days during the month, reaching as high as 3.46 million contracts across equities, foreign exchange (FX) and commodities on 25 September.

Key highlights:

• Significant growth in securities trading activity: Total market turnover value on SGX Securities jumped 75% year-on-year (y-o-y) in September to S$30.4 billion, while securities daily average value (SDAV) surged 67% y-o-y to S$1.45 billion – each measure at its highest since May 2022. For the July-to-September quarter, securities market turnover climbed 37% to S$86 billion from the same period last year, while SDAV increased 33% y-o-y to S$1.32 billion. During the month, Singapore’s stock market was the second most-actively traded in the region. The average securities net clearing fee for July-to-September was 2.54 basis points*.
• STI outperforms most ASEAN peers: The benchmark Straits Times Index (STI) advanced 4.1% month-on-month (m-o-m) in September to 3,585.29, outperforming most ASEAN peers and bringing year-to-date gains to 10.6%. On 23 September, the STI recorded a 17-year peak, while the STI Total Return Index achieved an all-time high.
• Record AUM for landmark climate action ETF: Assets under management (AUM) of the iShares MSCI Asia ex-Japan Climate Action ETF rose to US$556 million in September, the highest since the fund’s launch a year ago to catalyse sustainable investing in Asia. AUM of real-estate investment trust (REIT) ETFs surpassed S$1 billion for the first time on the back of strong third-quarter inflows alongside a rally in the Singapore REIT sector. Overall ETF turnover doubled y-o-y in September to S$445 million and was up 65% at S$1.18 billion for the July-to-September quarter, compared with the same period last year.
• Derivatives activity accelerates across multiple asset classes: Derivatives traded volume climbed 34% y-o-y in September to 28.9 million contracts, while derivatives daily average volume (DAV) increased 35% y-o-y to 1.45 million contracts – each measure hitting the highest in four-and-a-half years. Growth was across asset classes, with equity index futures volume up 37% y-o-y, FX futures volume up 35% y-o-y and commodity derivatives volume up 29% y-o-y. For the July-to-September quarter, derivatives volume gained 17% to 77 million contracts from the same period last year, while DAV rose 16% y-o-y to 1.2 million contracts. The average net fee per contract for equity, currency and commodity derivatives for July-to-September was S$1.33*.
• Preferred venue for managing China exposures: Open interest (OI) in SGX FTSE A50 Index Futures, the flagship SGX Equity Derivatives contract, rose to new high of 1.24 million contracts on 26 September. Momentum continued post-expiration, reaching a month-end notional record of US$17 billion. DAV for the contract – the world’s most liquid international futures for Chinese equities – climbed to a four-year high of 552,651 lots or US$6.8 billion notional, marked by a 128% m-o-m increase in overnight T+1 volume. For the July-to-September quarter, A50 futures volume gained 14% to 24.4 million contracts compared with the preceding three-month period.
• Record FX Futures and OTC FX volume growth: DAV of SGX USD/CNH FX Futures – the world’s most widely traded international renminbi futures – rose to a notional high of US$17.4 billion or 174,372 lots in September. This was up 12% from the previous record in August, underscoring SGX FX’s position as the preferred venue for price discovery and risk hedging during periods of market turbulence. Total FX futures volume climbed 35% y-o-y in September to 5.5 million contracts, led by a 55% y-o-y increase in SGX INR/USD FX Futures volume. For the July-to-September quarter, total futures volume gained 37% to 15.9 million contracts compared with the same period last year. OTC FX average daily volume (ADV) rose 46% y-o-y in September to a record US$148 billion. For the July-to-September quarter, ADV climbed 51% y-o-y to US$142 billion.
• Broad-based commodity gains lift volume to records: On SGX Commodities, total derivatives volume rose 29% y-o-y in September to a record 6.94 million contracts, with increases across SGX SICOM rubber and petrochemicals contracts, as well as iron ore – an instrument of choice for macro exposure – following China’s stimulus announcements. SGX SICOM rubber derivatives set a high of 421,113 lots, including a new single-day option volume high on 30 September, as TSR20 physical rubber prices advanced. Petrochemicals derivatives reached a record monthly average OI of 2.56 million metric tonnes, the highest in three years, driven by a growing base of participants. Iron ore derivatives also notched a single-day record volume of 597,467 lots on 30 September and a new monthly average OI high of 3,178,291 lots. For the July-to-September quarter, total commodity derivatives volume increased 23% y-o-y to 18.1 million contracts.