Singapore Exchange (SGXL.SI), Asia’s second largest bourse operator by market cap, must put in more effort to boost trading volumes as rivals are catching up, CEO Magnus Bocker said in the firm’s annual report.

“SGX is perhaps no longer as prominent as it used to be. In terms of rankings, for example, exchanges in the region as well as alternative trading platforms are rapidly catching up with us,” he said in the firm’s report for the financial year ended June 2010.

“If we consider volume traded, our securities market is small compared to global exchanges, while compared to five years ago, our position in the global derivatives market has also fallen,” he said in the report that was released on Wednesday.

SGX and Asian rivals such as Hong Kong Exchanges and Clearing (0388.HK) have seen new listings and stock trading volumes fall in recent months due to uncertainty about Europe and fears Chinese economic growth will slow.

Bocker has launched several initiatives to boost trading on SGX since becoming CEO last December.

The Singapore bourse operator earlier this week said it will introduce trading of corporate bonds in smaller denominations to develop a bond market for retail investors.

Last week, SGX said it will launch a new clearing service for over-the-counter trades in rubber as well as allowing investors to trade American Depositary Receipts of 19 Chinese firms listed in the United States.

SGX shares have risen about 4% so far this year, underperforming a gain of about 7% in Singapore’s benchmark index.