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Trading volumes in the Nifty futures index on SGX, the Singapore exchange, have witnessed a fall. But there has been a 61 per cent surge in the Nifty index options on SGX.
SGX statistics show that Nifty futures volumes declined by 21 per cent on a year-on-year basis up to October. In August, 21.10 lakh futures contracts of the Nifty index were traded on the SGX; this has declined to over 19.67 lakh. Nifty options trading was down by 28 per cent on a year-on-year basis up to October. But, there was a 61 per cent surge in the Nifty index options on a year-on-year basis up to October.
The Indian rupee and US dollar futures trading volumes fell by 2 per cent on the SGX. Dubai’s DGCX platform generates higher volumes in this pair.
NSE and SGX have said that they are working on moving the equity derivatives market outside India to the Gujarat-based GIFT City platform, where the government has offered tax incentives that would definitively remain for a decade.
Derivatives volumes down
On the SGX, the overall derivatives volumes have witnessed a slack, amid the active cash equities markets. The total equity-index futures traded volume on SGX declined 14 per cent to 12.2 million contracts in October, SGX said. The exchange said the Nikkei 225 Index (Japan) futures volume slid by 14 per cent month-on-month. On a year-on-year basis, futures volumes for the same index are down by about 34 per cent.
Though the losses suffered by traders in the derivatives segment are high, it is a preferred segment as the margin requirement is low and high volumes can be churned out with less money. The MSCI Singapore and MSCI Taiwan Index Futures remained strong performers, climbing 15 per cent and 12 per cent, respectively, SGX said.
According to the Singapore exchange, its total securities market turnover value rose to S$21.6 billion in October, rebounding 9 per cent month-on-month (m-o-m). The securities daily average value climbed 4 per cent m-o-m to Singapore $980 million, while the market turnover value for exchange-traded funds (ETFs) surged 55 per cent m-o-m to Singapore $236 million.
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