SGX's 16.9% derivatives volume surge was a one-off event: analyst

Expect a more gradual improvement.

According to Phillip Securities, SGX will be announcing its 2Q13 results on 22 Jan 2013. Based on monthly statistics recently released by SGX, 2Q13’s SDAV decreased 9.0% q-q to S$1.214 billion, due to the few large transactions in 1Q13. DDAV surged in 2Q13, increasing 16.9% q-q to 0.359 million contracts.

Here's more from Phillip Securities:

We expect Securities Revenue to decrease q-q due to the lower SDAV. Derivatives revenue is however expected to increase due largely to the 75% q-q increase in FTSE China A50 Index Futures volume to 3.97 million contracts, and smaller but significant q-q increase in Nikkei 225 Index Futures and Options to 6.96 and 1.63 million contracts respectively.

Looking ahead, we expect SDAV to increase from the low base, due to a possible increase in attractive IPOs in 2013, and potential further market stimulus encouraging trading activities.

With a wide range of attractive offerings, we expect the volume of Derivative contracts to continue increasing. However, the q-q increase of 16.9% in Derivatives volume may not be repeated. A more gradual increase is expected.

Also Read

ESR-LOGOS secures $225m and JPY15.5b sustainability-linked term loans

Singapore leads SEA in FinTech funding

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

I want to download the media kit