SGX Outlook for 2025

What changed in your business over the last year and what was your biggest achievement? 

In 2024, major macroeconomic and geopolitical developments shaped global markets, with a record number of elections worldwide adding to the complexity. Against this backdrop, SGX Group played a crucial role in providing efficient price discovery and liquidity, helping global investors navigate challenging market conditions.

We achieved multiple records for our derivatives volumes on the back of strong demand for our risk-management tools across asset classes. This achievement underscores the relevance and strength of our multi-asset strategy in meeting the evolving needs of market participants.

What is your most important project this year (regulatory or otherwise)?

Looking ahead, we anticipate continued uncertainty and volatility, particularly with potential trade and policy changes under a new US president and administration. Ongoing geopolitical risks, divergent monetary policies and modest global economic growth also means investors will hunt for growth in diversified assets and themes. 

In this highly dynamic environment, our role as a neutral and trusted marketplace where investors can manage risk and uncover opportunities has become even more important. Amid uneven growth across regions, we believe emerging Asia remains a bright spot that global investors cannot afford to ignore. Asia offers unique opportunities and SGX is in the heart of this, building linkages and streamlining access to the region.

As such, we have multiple projects that are focused on creating new engines of growth for both us and our customers. This includes strengthening our multi-asset offering and network, developing pioneering products that simplify access to hard-to-reach markets, enhancing investment opportunities across borders, and expanding our product offerings with new depository receipts, exchange-traded funds (ETFs), and daily leverage certificates (DLCs) that align with global trends. 

Another major focus is Singapore’s equities market. Even as the benchmark index for Singapore, Straits Times Index (STI) delivered its strongest performance in over a decade, structural improvements such as enhancing liquidity can be made to the stock market. We are working closely with the Monetary Authority of Singapore (MAS) Review Group to identify and develop market and regulatory initiatives that would meet this objective. 

What are you most excited for in 2025?

I am excited about the manifold opportunities we have across our asset classes – commodities, currencies, equities and fixed income – that allow us and our customers to capture the future of capital markets. The convergence of products and platforms presents a unique opportunity to redefine what an exchange can achieve.

In my outlook last year, I shared about the rapid growth of our iron ore derivatives franchise which has become Asia’s first global commodity. This month, I am thrilled to announce another significant milestone: our SGX Iron Ore 62 percent contract will be joining the Dow Jones Commodity Index (DJCI). The investment community’s growing interest in iron ore is driven by its reputation as a global barometer of industrialisation and its impressive performance over the last few years.

We also see more opportunities to harness our ferrous and freight offering. By leveraging our leadership in bulk commodities and our position as the world’s largest dry forward freight agreement (FFA) venue, we aim to offer an integrated solution for clients to manage bulk cargo and freight risks on a single, capital-efficient platform, given that iron ore is the most shipped dry bulk cargo. 

In the area of FX, we see rising interest in our FX futures and volumes coming from new market participants such as buy-side firms, asset managers, hedge funds and commodity trade advisors looking to hedge their commodity trades, who are attracted to the deep liquidity and capital efficiency of our flagship Asian contracts. 

There are significant opportunities to bridge the gap between FX futures and OTC FX. We will continue to prioritise connectivity and support to ensure OTC FX participants benefit from our deep FX futures liquidity pool, facilitating more efficient hedging and execution and lower trading costs. 

Finally, I’m excited about the steps we are taking to strengthen partnerships across the region as we aspire to be the exchange partner of choice. By fostering closer collaboration with other exchanges, we can create a more connected and accessible marketplace for investors. 

What are your biggest opportunities?

Our biggest opportunities in 2025 lie in two key areas: technology and people.

Digital advancements such as blockchain, artificial intelligence (AI), cloud technology and data analytics are reshaping how markets operate. The rise of AI brings opportunities that the financial industry is only starting to uncover. As we leverage technology to enhance efficiency and enable new offerings, we are mindful that trust is our bedrock. 

Finally, nothing would be possible without our people. Our success is driven by the dedication, creativity and passion of my colleagues who continuously push the boundaries of what’s possible. By investing in our team, we create a legacy of trust, innovation and excellence that will endure for generations to come. As we celebrate our 25th anniversary, we reaffirm our commitment to building thriving marketplaces and ecosystems that stand the test of time.

What do you see as the key themes and trends for your exchange and market infrastructure in 2025?

Several key themes and trends will shape market infrastructures in 2025.

• Macroeconomic events: Ongoing conflicts, geopolitics and protectionism will influence market dynamics. It is crucial for us to stay agile and responsive to these geopolitical shifts to mitigate risks and seize opportunities.
• Technological advancement: Technology is a transformative force that enables more efficient and inclusive markets. Regulating technology while embracing the rapid pace of innovation will remain a challenge for the industry. 
• Market resilience: As cyber threats become increasingly sophisticated, working closely with each other to ensure a robust ecosystem will be paramount. 
• Sustainability: ESG has to be a cornerstone of every company and exchange’s strategy, and should be business as usual. However, as the ESG landscape evolves with varying pressures from multiple stakeholders, exchanges will have to adapt and adjust their toolkits.