Singapore Stock Exchange Clocks Record Revenue In FY22 On Strong Derivatives Volume

Singapore Stock Exchange Clocks Record Revenue In FY22 On Strong Derivatives Volume

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.

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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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