As FX trading volumes in Singapore continue to grow, marketparticipants are confident that the connectivity and trading infrastructure arein place to support current and future market requirements.FX Volumes Surge in SingaporeThe most recent triennial central bank survey of the globalFX and OTC derivatives market, conducted by the Bank for InternationalSettlements, found that average daily FX trading volumes in Singapore increasedby 60% between April 2022 and April 2025, driven by robust growth in US dollar,Japanese yen, and euro trading.Volumes in FX spot, forwards, and swaps (which togetheraccounted for 90% of Singapore’s turnover) rose by between 42% and 61%.Singapore strengthened its position as the third largest FXcentre in the world after the UK and the US, with its share of global FXvolumes rising to 11.8% and accounting for almost $1 trillion of FX tradingevery day.MAS Highlights Liquidity RoleThe executive director of the financial markets developmentdepartment at MAS refers to deeper liquidity in the Asian time zone to supporteconomic and hedging needs in the region as a key factor in this increase andhighlighted Singapore’s role as an efficient price discovery hub.Banks Anchor Regional FX TeamsWith all of the top five global banks housing their regionalFX sales and trading teams in Singapore, the city-state offers a deep andliquid market for the trading and hedging of G10 currencies, as well as Asianemerging market currencies.Electronic Trading Demands RiseAs more trading shifts to electronic platforms, the demandson infrastructure naturally increase—especially during volatile periods whenactivity spikes. That is the view of Jean-Philippe Malé, CEO SGX FX, who issatisfied that infrastructure development has kept pace with the development ofthe FX market.“The market continues to function smoothly, and that speaksto the depth of investment in infrastructure in Singapore,” he says. “Weoperate from Singapore to connect global participants to Asian currency riskwith our on-premise and cloud-based environments to support trading at scale.”Infrastructure Supports FX ExpansionSingapore is a highly advanced economy with world-classdigital infrastructure and ubiquitous internet access, and Interactive Brokerssees growth in domestic clients using its institutional-grade FX rates insupport of their trading of overseas assets.“From our perspective, data centre capacity and tradingbandwidth has not been an issue, and we are confident that the localinfrastructure is more than capable of supporting future growth,” says YujunLin, CEO of Interactive Brokers Singapore.Chaitanya Peddada, chief operating officer of Spark Systems(a Singapore-based fintech that develops ultra-low latency FX trading platformsand technology solutions), also observes that Singapore’s data centreinfrastructure has broadly kept pace with the growth in electronic FX trading,particularly as the market has moved towards more continuous, automatedexecution.Shift to Localised ProcessingA key shift has been the move to localised processing andmatching, which has reduced reliance on offshore infrastructure and improvedlatency for institutional participants.“FX trading has become significantly more data-intensive,”he says. “Platforms are processing large volumes of market data, orders, andtrade information on a near-continuous basis, placing increasing demands oninfrastructure. As a result, the focus is on delivering consistent,sub-millisecond performance, resilience, and the ability to scale withoutintroducing latency.”Singapore Positioned for FX GrowthWith strong global connectivity, sub-millisecondperformance, and scalable infrastructure in place, Peddada reckons Singapore iswell-positioned to support its continued expansion as a leading global FXtrading hub.From a sell-side perspective, Singapore’s data centres haveon the whole kept up with demand, suggests Philip Huang, chief risk officer atOrient Futures Singapore.“The infrastructure is stable and capable of supportingelectronic FX trading,” he says. “That said, most liquidity in Asia is stillconcentrated in Tokyo (TY3), which remains the main price discovery centre.While Singapore (SG1) has strong CNH liquidity, broader G10 and regional FXliquidity is still largely anchored in Tokyo, New York, and London.”MAS Builds E-Trading InfrastructureOver the last few years, MAS has been working with banks andtrading platforms to build up Singapore's e-trading infrastructure. Theregulator hopes this will improve price discovery and FX trade execution in theregion and provide market participants with reduced latency, better pricing,and liquidity.According to Malé, Singapore already has the fundamentals itneeds to support its future electronic FX ambitions in the form of deepliquidity, global participation, and strong regulatory oversight.“That is why it consistently ranks among the top FX centresglobally,” he says. “What is changing now is how firms trade, as more risk ismanaged across asset classes. For us, FX is part of our broader multi-assetplatform, which allows participants to manage currency exposure alongsideequities, rates, and commodities. That integrated set-up strengthensSingapore’s role in a market that is becoming more electronic andinterconnected.”Connectivity and Matching EnginesSingapore’s rise as a major global FX centre has beenclosely linked to improvements in connectivity and trading infrastructure, andthe city-state now benefits from strong regional and international networklinks, local matching capabilities, and an increasingly sophisticatedinstitutional ecosystem—all of which support low-latency electronic trading,explains Peddada.“From our perspective, the ability to operate local matchingengines across key FX centres—including Singapore, Tokyo, London, and NewYork—plays an important role in mitigating latency in a global market,” hesays. “By matching trades closer to end users, participants can accessliquidity more efficiently without relying solely on offshore infrastructure.”South East Asia Colocation Data Center Portfolio Report 2025: Singapore Dominates the Existing Market with a Power Capacity of More Than 780 MW - https://t.co/guyiBA7QmK https://t.co/7YkMcocVyc pic.twitter.com/OrYIF0TofQ— Latest News from Business Wire (@NewsFromBW) January 6, 2026Future Electronic FX ChallengesGiven Singapore’s status as a fast-growing and systemicallyimportant FX hub, Peddada believes the combination of low-latencyinfrastructure, deep connectivity, and institutional participation positionsthe market to play a leading role in the next phase of electronic FXdevelopment.Huang also agrees that Singapore has the connectivity andtechnical infrastructure needed to support further growth in electronic FXtrading, although he acknowledges that other challenges remain.“The bigger issue is where pricing is generated,” heconcludes. “Many liquidity providers still run their main pricing engines inother regional hubs. For Singapore to strengthen its position as an electronicFX hub, more liquidity providers would need to originate pricing directly fromSG1 rather than simply distribute prices from other regional centres.”This article was written by Paul Golden at www.financemagnates.com.