Singapore Exchange Limited (SGX) announced today that its Futures and Options market saw another record year in 2007. SGX’s derivatives volume exceeded 44 million contracts, surpassing its previous annual record volume in 2006 by 21%.
The strong increase in overall volumes was fuelled by soaring growth in some of its key contracts including the Nikkei 225, MSCI Taiwan and the MSCI Singapore Index Futures contracts, which also hit new record highs this year.
In particular, SGX saw its MSCI Singapore Index Futures (SiMSCI) volume grow by more than 80% year-on-year. It is envisaged that with the recent launch of the new Minimum Bids Schedule for the Singapore cash market, volume in SiMSCI is set to grow further as SGX plans to target new segments of the market. These include algorithmic traders and cash versus index futures arbitrageurs, who will find it more efficient to trade the Singapore market.
The SGX CNX Nifty Index Futures registered significant growth as interest in the India market continues. Its growth also coincides with onshore regulatory amendments in the structured products arena and SGX’s downsizing of the Nifty contract in November 2007.
Futures 2006 2007 Growth
Nikkei 225 18,017,221 21,937,499 22%
MSCI Taiwan 10,824,249 13,611,314 26%
MSCI Singapore 2,214,521 4,012,860 81%
Mini JGB 1,427,458 1,457,309 2%
CNX Nifty* 672,225 1,443,085 115%
* CNX Nifty (India) Index futures were downsized by 1/5 on November 19th 2007. Volumes shown have been adjusted for size.