For many Singaporeans, the Singapore Exchange (SGX) is synonymous with our local stock market. But what many may not know is that SGX is also a leading multi-asset exchange that deals with bonds, derivatives, currencies, and commodities.
In fact, SGX (SGX: S68) now generates most of its revenue from its derivatives segment which has seen strong growth over the past few years. In contrast, its equities segment has seen recent headwinds as SGX has struggled to win new listings on the Singapore stock market. Will growth in the derivatives market continue to overshadow equities? I decided to attend the company’s latest annual general meeting to learn more.
Here are six things I learned from the 2019 SGX AGM:
1. Revenue and net profit both increased 8% year-on-year to S$910 million and S$319 million in FY2019 respectively. This was mainly led by strong growth in the Derivatives segment, with revenues