Euronext FX volume remains in growth mode

abdelaziz Fathi

Pan-European exchange, Euronext has reported a five percent increase in the average daily volume on its spot foreign exchange market. The ADV figure stood at $20.61 billion in February 2023, which is up from January’s $19.64 billion.

Taking a year-over-year perspective, Euronext’s currency turnover was down 18 percent from $25 billion reported back in February 2022.

In terms of its aggregated monthly turnover, Euronext FX reported $412 billion, which is down 4.6 percent from $432 billion that changed hands in the previous month.

Euronext, which operates stock and derivatives markets in countries such as France, the Netherlands and Belgium, also said its total derivatives trading was down by 4 percent. The figure was reported at 13.22 million contracts a day in February compared to 13.75 million in December. It was also down -20 percent when weighed against 2022’s turnover of 16.58 million contacts.

Euronext confirmed the attractiveness of its primary markets activity in 2022, remaining the leading venue for equity listing in Europe and debt listing worldwide. The company operates listing venues in Amsterdam, Brussels, Dublin, Lisbon, Oslo, Milan and Paris, and is home to 1,900+ equity issuers, worth €6.4 trillion in aggregated market capitalization. As of today, Euronext is by far the largest stock market operator in Europe in terms of aggregated market capitalization. Additionally, 25% of the shares traded in Europe are traded on Euronext markets.

Full year 2022’s underlying revenue came in at €1.46 billion, up 9.3 percent from €1.14 billion the previous year, illustrating the strong performance of non-volume related business and enhanced revenue capture.

The exchange operator attributed the results to stable performance in listing and post-trade businesses, as well as the contribution of the Borsa Italiana.

Trading revenue in 2022 was higher by 10 percent on a yearly basis at €541 million, primarily driven by strong performance of FX and power trading volumes. The softer cash trading volumes from the second semester of 2022 were offset by yield management and an uptick in market share from October 2022.

Meanwhile, post-trade revenue grew 13.7 percent to €364.5 million thanks to the strong performance of the clearing activities of its Italian units and Euronext’s diversified business model. In addition, custody and settlement revenue scored a 10 percent increase to €243.1 million even though the Nordic CSDs was less dynamic reflecting notably normalised levels of retail activity.

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