Market Insights – APAC FX

Managed Colocation Market Insights – APAC FX

Managed Colocation Market Insights – APAC FX

As a managed infrastructure provider, Options have a unique insight into market growth around the world as conveyed through the needs of our clients. Mapping those insights against wider market trends to anticipate future client need is a critical part of our product management process. It drives preemptive investment and allows us to offer aggressive pricing based on projected client requirements (rather than reduced known requirements).

Over the past year, we’ve seen strong growth in Foreign Exchange trading, tying into an increased demand for FX solutions from both existing and new clients. Following that thread has led us to focus on APAC markets – and on Singapore in particular. SGX’s FX futures market has grown from non-existent to a powerhouse in the past three years, and is now driving substantial trading volume and market capitalization in APAC as Renminbi and emerging currencies continue to capture the international spotlight.

Partially driven by the tax efficiencies and regulatory benefits gained from hosting FX engines in Singapore1, SGX’s USD/CNH futures alone reached US$194B in H1 2018, up from US$190B in all of 20172. INR futures have seen a significant boost on SGX as well; INR/USD futures volume was up 34% year over year for Q3 20183.

SGX has positioned itself well – with its recently launched (and traded4) FlexC FX Futures – to take a market-leading role as FX markets move toward central clearing. Between world events, FlexC FX Futures, and the ongoing influx of buy-side traders, SGX is trending toward another year of record growth.

At Options, we are constantly looking for innovative ways to meet our clients’ wide range of requirements, ensuring that they always stay at the forefront of the industry. In some cases that means providing the lowest latency core infrastructure available (e.g. via Arista’s new 7130 series (f.k.a. Metamako MetaMux)); in others, it means providing cost-efficient and rapid time-to-market around the globe, encompassed by industry-leading support.

Options facilitates trading at hundreds of venues worldwide with fully managed colocation services, recently expanding our presence in Singapore to meet the increasing demand for APAC liquidity. Options’ SGX and SG1 managed colocation facilities provide rapid time to market and massive TCO reduction, wrapped in best-in-class resiliency and security.

– Micah Kroeze, VP Product Management

1: https://www.euromoney.com/article/b19tlj61yh5wgx/singapore-fx-market-riding-high-on-world-events

2: https://www.straitstimes.com/business/companies-markets/sgx-to-launch-sgx-flexc-fx-futures-in-august

3: https://api2.sgx.com/sites/default/files/market-updates/migration/FX%20newsletter%20Sep%202018%20v3_0.pdf

4: https://www2.sgx.com/research-education/market-updates/20190110-sgx-completes-worlds-first-usdcnh-flexc-fx-futures-trade

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