Singapore Exchange Earnings: High Volatility Drives Strong Result

We increase our fair value estimate for wide-moat Singapore Exchange by 4% to SGD 13.60. The exchange reported strong results as volatility around the US election resulted in strong revenue growth in the company’s derivatives segment. Adjusted net profit after tax of SGD 320 million was up 27% from the previous corresponding period, as increased revenue from high volatility provided operating leverage on a mostly fixed cost base.