Record year for SGX derivatives and ETF markets in 2008

6 January 2009

Singapore Exchange Limited (SGX) announced today that its derivatives and Exchange Traded Funds (ETF) markets set new trading records in 2008. Its derivatives market set a record for volumes traded for the third consecutive year since 2006, while SGX-listed ETFs hit a record for the total value traded in 2008.

“Our trading records have been set as customers benefit from using our market access products, including futures contracts and ETFs. Investors can capitalise on our products to seize investment opportunities and manage risks, even in challenging markets,” said Mr Chew Sutat, SGX Executive Vice President & Head, Market Development.

SGX’s derivatives volume was almost 62 million contracts, surpassing its previous record volume in 2007 by nearly 38%.
By September 2008, turnover in the total futures and options market had already surpassed that for the whole of 2007. This was followed by a record month in October, when 6,863,420 contracts were traded.

“We are pleased that all our major equity derivatives achieved record annual turnover in 2008. This proves that customers find value in our Asian Gateway proposition of providing a one-stop, pan-Asian equity derivatives product range,” said Mr Chew.

“Recent initiatives, such as the launch of the SGX Proximity Hosting Service with Asia's first sub-millisecond trading access; upgrade of the trading engine with increased functionalities; and continued efforts to expand our global customer base, place us in good stead to grow our derivatives business in 2009 and beyond.”

Total trading value of SGX-listed ETFs in 2008 was $2.94 billion – a 155% increase over the previous record of S$1.15 billion registered in 2007.

The increase in value is largely due to active trading in the iShares MSCI India ETF, Lyxor ETF China Enterprise (HSCEI1), Lyxor ETF India (S&P CNX Nifty), SPDR® Gold Shares and streetTRACKS® STI2 Fund. In addition, the launch of five new ETFs3 on SGX by Lyxor International Asset Management in November 2008, including the first ETF in the region on the MSCI Asia APEX 50 Index, contributed to the increased trades as well.

“The increase in value of ETFs traded is especially significant given that market values have generally fallen in 2008. The increase is due to growing customer awareness of the benefits of ETFs. Investors appreciate the market access, diversification, transparency and flexibility that ETFs offer, especially in a volatile market. We are encouraged by the increase in trading value, and have a pipeline of ETF listings in 2009 that will further facilitate investor access to more asset classes and geographies,” said Mr Andrew Ler, SGX Senior Vice President & Head of Private Investors.

SGX currently has 24 ETFs covering mainly Asian equity markets such as Singapore, India, Greater China, ASEAN, Korea and Japan; as well as commodities, including gold.

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