“We believe the prior year, which included assassination attempts against a presidential candidate and dramatic shifts in trade policy, sets a high bar in terms of volatility. But we believe SGX's outsize exposure to derivatives, compared with other exchanges, positions it well as prior secular trends around stable geopolitics, globalisation, free trade and supportive central banks appear to weaken,” he writes in a Dec 15 note.
Volumes are strong on the Singapore Exchange (SGX) heading into the new year, with recent monthly statistics besting even 2024’s “high-water mark” of volatility.
Volumes are supported by ongoing geopolitical uncertainty, shifting trade policy and global interest rate easing, says Morningstar Equity Research analyst Roy Van Keulen. While he raises SGX’s revenue forecast for FY2026 ending June 30, 2026 by 4% to $1.5 billion, Van Keulen is “hesitant to extrapolate elevated volatility”.
