Singapore Exchange Trader

April 14th, 2015, 02:31 AM

jerbersoft

Very informative discussion we have here. Ok, I'm going back to the products. I assume the Nikkei 225 Index is the most liquid contract being traded in the SGX. is this correct?

From what I know, Nikkei 225 Index futures is not the most liquid contract in SGX based on monthly volume traded.

SGX FTSE China A50 Index futures has higher trading volume per month compared to SGX Nikkei 225 Index futures.

April 14th, 2015, 05:52 AM

JacLau

From what I know, Nikkei 225 Index futures is not the most liquid contract in SGX based on monthly volume traded.

SGX FTSE China A50 Index futures has higher trading volume per month compared to SGX Nikkei 225 Index futures.

Thanks for this information @JacLau. I got interested with this because the Nikkei 225 was the instrument Nick Leeson was trading in SIMEX before. So I assumed it was the most liquid instrument.

May 16th, 2015, 11:34 PM

Nikkei is probably the best SGX contract to trade. The tick size for the A50 is very small, $2.50, which was cut in half earlier this year. It used to be $5.00 a tick. Nikkei trades in 5 index points a tick, so like 17430 bid, 17435 offer. the spread is 2500 Yen, which is around $23 a tick.

You can't go by monthly volume per se because the A50 trades serial months, ie monthly expirations, so you have a roll period every month where the positions have to be rolled and that will skew a monthly volume number, as HF will roll thousands of contracts a month even though intraday they are not trading it daily.

Nikkei daily volume is solid, a few hundred on the bid and offer at every price level. Its a thick market. Even into the first few hours into the after market (T+1 session), the volume is decent.

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