SGX’s stellar derivatives market under threat as China A50 Index futures bag lion’s share of deals

It’s responsible for almost half of all derivatives contracts in March.

The Singapore Exchange saw a stellar growth in derivatives in March, but analysts warn that the dominance of its star China A50 Index futures has put the business in a vulnerable state.

“On closer look, the FTSE China A50 Index futures dominate as much as 50% of the total volume of derivative contracts traded on the SGX. This tipping of the balance puts the business in a slightly vulnerable situation, especially when rumours are circulating in the market place that the HKEx themselves are considering their own China A50 Index Futures product,” stated Nicholas Teo of CMC Markets.

SGX reported that derivatives average daily trading volume increased by 46% year-on-year to 678,126 contracts and up 15% month-on-month in March.

Total derivatives volume in March was 14.8 million contracts, up 56% year-on-year and 52% month-on-month.

Also Read

COTD: APAC deal volume falls 6.8% amidst economic uncertainties and tensions

Securitisation seen as key for Singapore developers to enhance returns

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