Euronext FX volumes surpass $500 billion mark

abdelaziz Fathi

Pan-European exchange, Euronext has reported a four percent increase in the aggregated monthly turnover on its spot foreign exchange market. The figure stood at $514 billion in June, which is up from May’s $495 billion.

Taking a year-over-year perspective, Euronext’s total currency turnover was slightly higher from $510 billion reported back in June 2022.

In terms of its average daily volume, Euronext FX reported $23.4 billion, which is up 8.5 percent from $21.5 billion that changed hands in the previous month.

Taking a quarterly perspective, Euronext reported an average daily volume on its spot foreign exchange market at $21.6 billion for Q2 2023, down 8.6 percent compared to $23.6 billion a year ago.

Euronext, which operates stock and derivatives markets in countries such as France, the Netherlands and Belgium, also said its total derivatives trading was up by 7 percent. The figure was reported at 13.3 million contracts a day in June compared to 12.4 million in May. However, it was down -18 percent when weighed against 2022’s turnover of 16.16 million contracts.

The spot foreign exchange division yielded €6.3 million in Q1 revenues, down 12 percent from €7.2 million in Q1 2022. On a like-for-like basis at constant currencies, FX trading revenue was down -15.6% in Q1 2023 compared to the prior year.

Overall, trading revenue in 2022 was down by 23 percent on a yearly basis at €72 million, primarily driven by softened volumes against the exceptionally strong Q1 2022. Equity market share was sustained at 63.8%. Cash revenue capture averaged 0.48bps, negatively impacted by larger average order size.

During the first quarter of 2023, derivatives trading volumes decreased across the offering with average daily volume on financial derivatives at 595,702 lots, down -20.0% from Q1 2022. The exchange operator attributed the poor performance primarily to a decrease in equity individual derivatives trading reflecting the exceptionally strong volumes in Q1 2022 and uncertainties around fiscal treatment of dividend in France.

However, Euronext revenue capture on derivatives trading was €0.34 per lot for the first quarter of 2023, reflecting a positively geared volume mix and solid revenue capture.

Meanwhile, post-trade revenue fell by two percent to €94 million due to lower clearing activities of its Italian units and Euronext’s diversified business model. In a different vein, custody and settlement revenue scored the best quarter in Euronext’s history with revenue of €64.0 million (+0.1%) supported by new fee schemes.

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