Singapore Exchange (SGX) - CGS-CIMB Research 2023-01-19: Supported By Risk Management Activity

• Although Singapore Exchange (SGX:S68)’s securities daily average value (SDAV) rose 10% y-o-y to S$935m in Dec 22, Jul to Dec 22 monthly average of S$1.1bn was 7% lower y-o-y, as market volatility hampered risk sentiment amid interest rate uncertainties. Nonetheless, these uncertainties continued to fuel risk management needs, pushing derivatives DAV 8% higher to 920k contracts in Dec 22, and Jul to Dec 22 monthly average 11% higher y-o-y to 1.03m contracts.
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Maintaining its market share stronghold in China A50 volumes

• SGX’s equity index futures volumes held steady y-o-y in Jul to Dec 22 as overall strength in these hedging instruments offset the relative weakness in its FTSE China A50 index futures (-3% y-o-y). Notably, SGX still maintained its market share stronghold (>90% as at end-Dec 22) in terms of contracts and open interest over HKEX’s competing product, in part adding to its ability to raise fees on this contract in Jul to Dec 22.
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Stronger treasury income for SGX as interest rates rise

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Andrea CHOONG CGS-CIMB Research | https://www.cgs-cimb.com 2023-01-19 SGinvestors.io

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