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3 Must-See Slides from Singapore Exchange Limited’s Presentation

Recently, Singapore Exchange Limited (SGX: S68) released its presentation slides for one of its investor relations events, SGX – MKE Singapore Corporate Day 2017.

Below are three slides from the presentation that I thought would interest investors.

The first one talks about the various business segments of the stock market operator.

Source: Singapore Exchange Limited SGX – MKE Singapore Corporate Day 2017 Presentation Slides

SGX is the only stock market operator in Singapore and is an established one at that. Its three business segments are Equities and Fixed Income, Derivatives, and Market Data and Connectivity.

The first segment takes care of everything that has got to do with buying and selling of equities, exchange traded funds (ETFs), real estate investment trusts (REITs), structured warrants and bonds.

The Derivatives segment offers derivatives trading and clearing services, membership and collateral management. Its product offerings include equity indices, currencies, and commodities.

Last but not the least, Market Data and Connectivity unit, as the name suggests, provides market data and connectivity services. It is also involved in the creation of indexes.

The next slide shows how much these segments have grown from the full year ended 30 June 2012 (FY2012) to FY2017.

Source: Singapore Exchange Limited SGX – MKE Singapore Corporate Day 2017 Presentation Slides

In FY2012, the revenue raked in by SGX was S$648 million. It had grown 4.3% annually to S$801 million in FY2017.

Out of the S$801 million, bulk of the revenue was from Equities and Fixed Income. Derivatives took up 38% of revenue while Market Data and Connectivity contributed to 12% of sales.

Meanwhile, net profit had increased from S$292 million in FY2012 to S$340 million in FY2017, translating to a compounded annual growth rate of 3.1%.

The last slide explains the derivatives business in-depth.

Source: Singapore Exchange Limited SGX – MKE Singapore Corporate Day 2017 Presentation Slides

SGX prides itself on being the world’s most liquid offshore market for Asian Derivatives.

Derivatives revenue has enlarged from S$147 million in FY2009 to S$303 million in FY2017, an annualised increase of 9.5%. This growth is on the back of a 14% annualised rise in volume from FY2009 to FY2017.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. The Motley Fool Singapore has recommended shares of Singapore Exchange Limited. Motley Fool Singapore contributor Sudhan P doesn’t own shares in any companies mentioned.