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SGX SICOM Rubber Contracts Achieve Record Volume in September 2013

Michael Syn, Head of Derivatives at SGX

Michael Syn, Head of Derivatives at SGX

Singapore Exchange (SGX) is pleased to inform that its global US Dollar benchmark SICOM Rubber Futures contracts achieved new records in September 2013.

Total volume traded for September 2013 reached a monthly record high of 39,230 lots (196,150 mt), following the single day record volume of 3,412 lots (17,060 mt) traded on 12 September 2013. Open interest reached a high of 23,378 lots (116,890 mt) on 3 September 2013, representing a 44% share of open interest in international markets. Volume in the period of July to September 2013 also hit a quarterly high of 100,838 lots (504,190 mt), a 15% increase from the previous high of 88,038 lots (440,190 mt) registered in Q2 of 2013.

The SICOM benchmark rubber prices are relied upon by major global tire manufacturers and rubber producers for pricing their transactions in natural rubber. The SICOM rubber futures contracts serve to meet the trading and hedging needs of physical market participants, who currently account for more than half of trading volumes. Recent volume records are established on the back of increasing interest by financial institutions seeking trading opportunities in a commodity market that is anchored on the physical trade. This has in-turn led to a more liquid marketplace for hedgers.

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