SGX profits at risk from insufficient trading volumes in derivatives

The surge in China A50 futures and Iron Ore derivatives may taper off.

SGX saw profit growth from a surge in derivative demand, but analysts argue that part of this surge could be short-term.

According to DBS, derivatives revenues soared, driven by growth for China A50 futures and Iron Ore derivatives. However, the surge in the China A50 futures activities may not be sustainable.

DBS adds that derivatives, which is a growing revenue generator, could be at risk if products do not generate sufficient trading volumes.

Despite a slight revival in trading values, securities revenues declined due to a drop in clearing fees. SGX continues its efforts to enhance the securities market starting with the reduction of the standard board lot size to 100 from 1,000 on 19 January. The minimum price of S$0.20 for a stock will be implemented in Mar 15.

The other initiatives: (1) collateral requirement for securities trading, (2) short position reporting requirements, (3) transparency of trading restrictions, and (4) reinforcing the SGX listings and enforcement framework, will be implemented over the next few quarters.

Other revenues were flattish q-o-q. Higher expenses were related to variable staff costs. A based DPS of 4 Scts was declared.

The people you want to reach are already in this room.

Every quarter, SBR lands on the desks of the founders, CFOs, and directors running Asia's most consequential companies. Every day, they open our newsletter and read our website. It's a room that took twenty years to build — and it's the one most of our partners are trying to get into.

The good news is that the door is open. We work with companies on thought leadership articles, sponsored content, industry summits across Southeast Asia, regional awards programmes, podcasts, and media placements in print and digital. The shape of the right partnership depends on what you're trying to do, which is why we'd rather start with a conversation than send a rate card.

If you have something this room should know about, tell us. We'll tell you honestly whether we can help, and how.

No rate cards until we understand the brief. It's a better use of everyone's time.

Book a meeting

| Or download the media kit (PDF)

240,000 senior readers quarterly in print Top 1,700 Singapore companies reached

7 markets across Southeast Asia