Singapore Exchange (SGX)

[opmi]

futures business can be very fleeting. if some other exchanges offer lower trading and clearing fees, liqudity will run there. e.g. Eurodollars futures.

It is indeed a very valid concern...

(vested)

SGX's success with China A50 futures may be cause for concern

SINGAPORE (April 23): Singapore Exchange reported strong growth in top- and bottom-line numbers for their Q3 FY2015 yesterday, mostly beating market estimates.

It’s no surprise that the derivatives business drove the strong numbers, with the lion’s share coming from the explosive 165% y-o-y increase in trading volume on the FTSE China A50 Index futures.

Quarterly trading volumes on the FTSE China A50 contract are now more than 40% of total derivatives volumes for SGX.

Operating profit margins were a bit of a letdown, as expenses grew faster than the top line, with an increase in salaries and investment in technology.

A key worry for the SGX and their derivative business may be the ‘concentration’ on the China A50 future contract.
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http://www.theedgemarkets.com/sg/article...se-concern