Rising derivatives revenue contributed to the net profit of the Singapore Exchange (SGX) surging 16 percent during the third quarter, according to earnings reported on April 17.

The figures released by the Asian exchange indicated that the net profit for the quarter was S$77.8 million (US$62.25 million), even though revenue decreased by 3.1 percent to reach S$163.6 million (US$131.4 million), according to Channel NewsAsia.

The net profit was higher than the mean prediction of S$75 million provided by analysts who took part in a Reuters poll. The earnings for the quarter also exceeded the S$67 million during the same three months in 2011. The numbers generated during that period were undermined by costs stemming from the company's failed attempt to acquire Australian exchange operator ASX.

Channel NewsAsia reports that various firms worldwide have expressed an interest in listing on the SGX.

"What we are doing to try to enable growth in it is through better technology; increasing the number of members both in our neighbourhood and also further away, make it more attractive for investors – institutional as well as retailers – to come to our market to invest," stated SGX chief executive officer Magnus Bocker, according to the news source.

Most European banks are having a hard time collecting the derivatives data they need, according to a survey conducted by software firm Sybase.

Of the 41 European banks that took part in the poll, 31 stated that they are facing challenges aggregating the information they need, in spite of the substantial funds that have been invested into obtaining better information technology infrastructure, according to Financial News.

The lending institutions need this data for their own internal analysis, and also so that the information can be provided to financial regulators, the media outlet reports. Various banks based in different regions identified their inability to accurately collect data on their OTC derivatives positions as a major challenge when assessing risk.

"The chief problem banks face is the fact that trading in many asset classes takes place on a siloed basis, leaving their middle offices to contend with many unintegrated datasets. Clearly, this is a concern for reporting and compliance requirements," stated Stuart Grant, business development manager for Sybase’s financial services division, according to the news source.

A study conducted by Tabb Group indicated that the cost that market participants incurred in 2011 to clear OTC derivatives was $3 billion.

Global derivatives exchange CME Group announced that it will offer commodity swaps based on aluminum starting on April 30, according to a statement.

The Aluminum MW U.S. Transaction Premium Platts (25MT) Swap Futures will begin trading on the global derivatives exchange at the end of the month, and transactions will be cleared through CME ClearPort. The hedging tools for the industrial metal will add to other commodity derivatives – including those for precious metals and ferrous metals.

The Platts Aluminum Midwest US Transaction index, which involves spot contracts for the industrial metal, will serve as the basis for the risk management tool.

Reuters reports that this move could help to provide a significant boost to the market share of derivatives traded through CME Group, as various consumers and organizations currently hedge their aluminum exposures using derivatives.

"Increasing industrial demand from Asia and growing competition for resources have led to increased price volatility in some raw materials, like aluminum," Harriet Hunnable, CME Group managing director of metals, said in the statement. "This new, innovative aluminum swap futures contract will enable commercial market participants in North America to better manage their price risk on an average basis throughout the month."

The National Stock Exchange of India Ltd (NSE) announced on April 12 that it has received approval from regulators to offer derivatives based on the FTSE 100 index, according to a statement. The new derivatives product will become available for trading on May 3.

All equity derivatives members of the NSE will be able to trade the financial instruments, and doing so will not require additional capital.

The FTSE 100 index accounts for more than 80 percent of the value of the U.K. equity market. The index contains various options for investment and more than 30 exchange traded funds.

Ravi Narain, managing director and chief executive officer of NSE, said in the statement that "NSE is committed to providing its investors with a range of products and asset classes. The FTSE 100 Index, will help Indian investors to diversify their portfolios further and have access to one of the world's widely tracked equity indices, whilst minimizing currency risk.''

The NSE boasts the fifth-largest derivatives trading volume of any exchange worldwide and is the third-largest marketplace for financial transactions including stocks and other financial instruments.

Financial trade organization the World Federation of Exchanges (WFE) will bring together various experts in the derivatives markets between April 16 and 17 for the 29th annual International Options Market Association (IOMA) conference, according to a recently released statement.

The conference attendants plan to discuss how the derivatives market is being impacted by advances in technology and shifts in how trades are being made in the market. Various panel discussions have been scheduled for the event.

Participants will explore how the financial system is being impacted by developments in clearinghouses and exchanges that trade derivatives. The discussions will address the most timely matters related to these particular subjects, including risk management practices and the matter of visibility into the pricing of financial instruments.

"The topics that we will be discussing will have major implications in the derivatives industry, and the debate about trading on- or off-exchanges," Jorge Alegria, IOMA chairman and chief executive officer of the Mexican Derivatives Exchange, said in the statement. "Exchanges have operated without problems throughout the series of crises that beset the world’s financial system since 2007."

This consistency in the face of economic volatility has allowed them to provide customers with liquid products in markets that are efficient and equitable.