Singapore, Jan 20, 2026, 15:08 SGT — Regular session
- Shares of Singapore Exchange slipped roughly 1% in afternoon trading
- The bourse will launch 20-year mini JGB futures trading on January 26
- Traders eye the BOJ’s upcoming move this week, expecting a spike in Japan rates volatility
Shares of Singapore Exchange Ltd dropped Tuesday, slipping 1.1% to S$17.42 as of 2:59 p.m. local time. (SG Investors)
The retreat followed the exchange’s announcement that it will roll out 20-year “mini” Japanese government bond futures, expanding its Japan rates offerings. Shares closed Monday 0.5% lower at S$17.61 after the news broke. (The Business Times)
The timing isn’t random. Japan’s central bank will announce policy decisions on Jan 22-23, with traders eager for clearer clues on the pace and extent of future interest rate moves. (Reuters)
That’s significant for SGX since volatile rates usually drive increased hedging activity and boost futures trading — contracts allowing investors to secure prices ahead or bet on yield movements.
William Chin, SGX’s head of rates and derivatives, said the exchange aims to “build out a Japan rates curve,” referring to rolling out products across various maturities so traders can hedge different points along the yield curve. (The Business Times)
Demand stands out clearly. The Bank for International Settlements’ latest triennial survey shows average daily turnover in yen-denominated over-the-counter interest rate derivatives surged to $411 billion in April 2025, marking a 684% rise from April 2022. (Bank for International Settlements)
SGX shares have rallied sharply heading into 2026, climbing roughly 43% over the last year. The stock now reflects expectations of steady growth in derivatives and clearing fees. (StockAnalysis)
Competition is the catch. Osaka Exchange, under Japan Exchange Group, operates a mini 20-year JGB futures market and has been pushing to boost liquidity as the ultra-long segment of Japan’s yield curve shifts. (JPX)
SGX still needs volume despite the new contract. If market makers remain cautious or volatility drops after the BOJ meeting, the product might struggle to gain traction quickly, limiting any meaningful revenue boost.
Investors are also watching for SGX’s upcoming numbers. The company plans to release its first-half FY2026 results before the market opens on Feb 5, followed by a briefing at 9:00 a.m. Singapore time led by CEO Loh Boon Chye and CFO Daniel Koh.
Next on the calendar: the BOJ policy decision set for Jan 23, followed by the debut trading days of SGX’s 20-year mini JGB futures on Jan 26 — early volume will offer a quick reality check. (MNI Website)
