, Singapore

SGX eyes diversifying revenue streams

It wants to reduce reliance on derivatives, analysts say.

Singapore Exchange's acquisition of the Baltic Exchange for $137m in cash at the end of 2016 is expected to boost its plans to diversify revenue streams.

According to DBS Group Research, SGX is looking to grow the market for currency futures to reduce its reliance on the derivative segment.

More so, it is developing into a regional fixed income platform, with the launch of its bond trading platform – SGX Bond Pro.

Additionally, SGX is also looking to expand its global presence in shipping and has been developing Asian pricing benchmarks for commodities such as iron ore, liquefied natural gas and coking coal.

Finally, DBS Group Research said SGX is growing its market data and index businesses.
 

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