Singapore Exchange Sees Delisting Headwinds but Index Futures and Derivatives Trading Still Key

While Singapore Exchange offers less product breadth than its Japan and Hong Kong counterparts, the exchange still enjoys advantages through its ability to foster lower trading costs, collateral costs, and netting efficiency that cause market participants to gather around its platform. The SGX sees heavy trading volume for index futures, foreign-exchange futures, and pan-Asian derivatives, which creates a liquidity pool for semi-illiquid assets that otherwise would see higher liquidity premiums. However, over the past decade, SGX has faced increasing competition from Hong Kong Exchanges and Clearing, which puts the SGX in a more vulnerable position than its regional counterparts, which include the Japan Exchange.