The Singapore Exchange Reports Record Forex Trading in Volatile August Market
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The Singapore Exchange (SGX) recently shared a report that shows that its foreign exchange futures trading reached top levels in August. The platform said higher changes in the market and more risk-managing activities led to the biggest trading volumes it ever recorded.
According to the report, the Singapore Exchange’s FX futures trading grew by 33% from last year. This increase pushed the total volume to a record of 5.6 million contracts in August. The company said the trading volume of its favorite trade, USD/CNH FX Futures, increased by 25%, reaching 3.4 million contracts compared to the same time last year.
The Singapore Exchange Reveals Boosted Net Purchases From Retail Investors
The Singapore Exchange noted that retail investors were active during August, making net purchases of S$685 million, the highest figure seen in ten months. At the same time, institutional investors also increased their trades across different stock segments.
With the large boost in the Singapore Exchange’s trading, other platforms have shared their reports which matches the company’s record. FXSpotStream revealed that its trading volumes in August hit a record, with daily averages close to $97 billion, marking a 60% rise from the same period in the previous year.
The foreign exchange market is moving a lot due to the weak US dollar and the volatile Japanese yen. This has been seen in other parts of the world as well. In the USA and Europe, reports show trading volumes have increased.
According to the update, Cboe’s spot currency volumes grew to $1.1 trillion in August, up from $1.02 trillion in July. Although there were fewer trading days in August, the average daily volume still rose to 50 billion USD, from 44 billion USD in July.
The Singapore Exchange Reports Higher Activity In Securities And Commodities
The Singapore Exchange said the securities market has shown strong activity, with a 22% rise in total turnover value, reaching S$28.8 billion, the highest since March two years ago. The daily average value of traded securities increased by 28%, reaching S$1.4 billion.
In the commodities sector, the Singapore Exchange said it saw broad gains. The total derivatives volume rose by 20% from last year, hitting 6.1 million contracts. There was a big jump in petrochemicals trading, with volume rising by 91% to a record 2.35 million metric tonnes because of higher demand for hedging.
The Exchange stated that the Tokyo Overnight Average Rate Futures, which launched in July, is still gaining popularity. In August, 37,090 contracts were traded.
Despite all this trading activity, the Straits Times Index in Singapore dropped by 0.4% from the previous month, closing at 3,442.93. However, the report revealed that it remains 6.7% higher since the start of the year.
