Business confidence across the global derivatives market declined slightly this quarter despite a series of record volume days and heightened volatility, according to the SGX Global Market Sentiment Index—an industry barometer reflecting sentiment from across the global derivatives landscape.

The SGX Global Market Sentiment Index, produced by Acuiti, is based on a quarterly poll of Acuiti’s Expert Networks, which comprise senior derivatives-focused executives from hedge funds, asset managers, proprietary trading firms, and the sell-side. Each quarter, Acuiti surveys members on their outlook for the next three months to compile the index.

The index fell to 74 this quarter, down from its record high of 78 in Q1 2025, though it remains above the historical average.

In Q2, sentiment was strongest among sell-side clearing providers, many of whom experienced record daily volumes during the heightened volatility in early April. Proprietary trading firms—whose revenues are closely tied to trading volumes—also reported high levels of optimism. Conversely, asset managers and hedge funds saw a decline in confidence.

Regionally, sentiment continued to rise in North America, reaching a record reading of 89. However, confidence in Europe dropped sharply from 81 to 73, while it remained flat in APAC at a relatively low level of 72.

“This quarter’s survey took place during a period of record volumes, as volatility gripped global markets in the wake of the US administration’s imposition of tariffs on its global trading partners,” said Will Mitting, founder of Acuiti.

“With that in mind, it’s no surprise that business confidence remains elevated. However, this quarter’s report also highlights notable declines in confidence—both regionally and among specific firm types. This suggests a growing sense of caution that belies the record trading volumes, as firms consider the longer-term impact of US government policy.”

This quarter’s report also explores firms’ approaches to digital assets. It found that around half of derivatives-focused hedge funds not currently trading digital assets are open to doing so in the future.

However, only about 12% of hedge funds, proprietary trading firms, and sell-side firms not currently active in digital asset markets are in the process of entering them. This indicates that near-term institutional adoption may be slow, with a larger wave expected further down the line.

The report also examined factors influencing the trading of perpetual futures. Institutional firms cited the need for trusted, institution-grade infrastructure, reliability, and regulatory clarity as key considerations.

Source: Acuiti