Singapore's stock exchange on Thursday reported its highest ever annual revenue since its listing, thanks to strong derivatives trading.
The Singapore Exchange Limited (SGX Group) reported a fiscal-year 2022 adjusted net profit of S$456.4 million ($330 million) and a 4% increase in its total revenue of S$1,099 million ($794.26 million), the exchange said in a statement. The company's fiscal year ended on June 30.
Excluding treasury income, total revenue grew 7% to S$1,049.5 million ($758.48).
The record-high revenue was driven by higher derivatives volumes across equities, currencies, and commodities, said Loh Boon Chye, CEO of SGX Group.
“Our fixed income, currencies and commodities (FICC) business remains a key growth engine and is expected to deliver mid-teens percentage revenue growth in the medium term,” Chye said.
OTC FX Volume: With the acquisition of MaxxTrader in Jan. 2022, coupled with contributions from BidFX, OTC FX average daily volume (ADV) grew 64% year-on-year in FY2022 to $70.6 billion and is on track to achieve an ADV of $100 billion in the medium term. The OTC FX pillar now contributes 5% of SGX Group’s total revenue.
Outlook: SGX maintained its medium-term outlook for revenue growth in the high-single-digit percentage range. The exchange said treasury income has bottomed out following interest rate hikes by major central banks and is poised to recover in FY2023.
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