SGX

SGX: In the 1Q FY15 market statistics, SGX derivatives market volume has emerged as the key positive, with growth in China A50 futures (+70% q/q) and record volumes from iron-ore and rubber commodities trading helping SGX record the highest derivatives volume since Jun 2013. While securities market weakness persists, as evidenced by 1Q FY15 ADT of $0.97b, an uptick in volatility and funds raised through IPOs ($1.9b) is encouraging. As such, the board lot size reduction in Jan 2015 will be a key catalyst for a permanent revival in ADT and cash market reform. Deutsche maintains a Buy rating on the counter with a TP of $8.70.