Euronext plagued by weak FX volume, derivatives down 35%
Pan-European exchange, Euronext has reported a 13 percent drop in the average daily volume on its spot foreign exchange market. The ADV figure stood at $19.7 billion in April 2023, which is down from March’s $21 billion.
Taking a year-over-year perspective, Euronext’s currency turnover was down by 20 percent from $24.6 billion reported back in April 2022.
In terms of its aggregated monthly turnover, Euronext FX reported $394 billion, which is down by a quarter from $521 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 35 percent MoM. The figure was reported at 11.1 million contracts a day in April compared to 17.2 million in the month prior. It was also down 22 percent when weighed against 2022’s turnover of 14.4 million contacts.
Earlier in March, Euronext rolled out the World Trade Center (WTC) Lisboa International Academy by ELITE, the Euronext network dedicated to fast-growing private companies, in Portugal, as a part of Euronext’s commitment to SMEs.
WTC Lisboa International Academy by ELITE is a programme leveraging over ten years of international experience in supporting private small and medium-sized companies to access skills, network and capital.
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.
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.