Euronext’s FX ADV drops below $20 billion in August

abdelaziz Fathi

Pan-European exchange, Euronext has reported an 8.2 percent drop in the average daily volume on its spot foreign exchange market. The ADV figure stood at $19.66 billion in August 2022, which is down from July’s $21.4 billion.

Taking a year-over-year perspective, Euronext’s currency turnover was higher by 24 percent from $15.8 billion reported back in August 2021.

In terms of its aggregated monthly turnover, Euronext FX reported $450 billion, which is slightly higher from $452 billion that changed hands in the previous month.

Following the boom in activity seen at major FX trading venues in the first half of 2022, the institutional ECNs were in a sea of red over the last two months. Almost all institutional platforms reported double-digit drops in their monthly volumes.

Euronext, which operates stock and derivatives markets in countries such as France, the Netherlands and Belgium, also said its total derivatives trading was lower 8.6 percent. The figure was reported at 11.8 million contracts a day in August compared to 12.9 million in the month prior. It was also down -6.4 percent when weighed against 2021’s turnover of 12.63 million contacts.

Founded as a joint venture by the Swiss bank Credit Suisse and FX broker FXCM in 2012, Euronext FX (formerly FastMatch) provides an electronic currency trading platform  mostly for institutional clients such as banks, asset managers and hedge funds. The FX unit of the franco-dutch exchange operator operates an electronic communication network (ECN) for currency trading and has matching engines in New York, London, Tokyo, and Singapore.

FastMatch was acquired by Euronext in 2017 as part of the exchange’s strategy to diversify its top line and extend its proposition to an additional asset class.

Euronext, which operates the biggest pan-European exchange, reported last month that its second-quarter revenues improved to a record €374.7 million, up 14 percent from a year earlier.

On the FX business front, Euronext reported an average daily volume on its spot foreign exchange market at $23.6 billion for the Q2 2022, up 27 percent compared to $18.6 billion a year ago. The spot foreign exchange division yielded €7.3 million in revenues, up from €5.7 million in Q2 2021, reflecting higher trading volumes as FX markets recorded heightened volatility through the quarter.

Euronext FX franchise disappointed expectations in 2021 that were already heightened after the exchange posted record trading volumes that were more than double the figure it typically generated before the pandemic.

Read this next

Digital Assets

Revolut receives FCA’s go-ahead to launch crypto trading

British fintech and banking firm Revolut has received a regulatory go-ahead to launch its cryptocurrency services in the UK.

Digital Assets

GBTC share is trading at 36% below bitcoin spot price

Grayscale Bitcoin Trust share has widened its discount relative to the underlying cryptocurrency held in the fund, the highest margin ever since its debut in 2013. Digital Currency Group’s flagship GBTC shares traded at a discount of 35.8% to net asset value (NAV) today.

Digital Assets

Crypto lender Nexo investigated by 8 US state regulators

State securities regulators in New York, California, Kentucky, Maryland, Oklahoma, South Carolina, Washington and Vermont are investigating crypto lender Nexo for allegedly failing to register its Earn Interest Product.

Metaverse Gaming NFT

Astar Network’s ad features 329 top brands to support Web3 in Japan

Blockchain innovation hub Astar Network is making strides in promoting the Web3 adoption worldwide. In yet another milestone, the smart contracts platform has run a national newspaper ad in Japan that set a new global record with participation from 329 blue-chip firms.

Digital Assets

Pyth Network welcomes onchain data from crypto market maker Auros

“By sharing our high-frequency trading data with a truly onchain decentralized network, we aim to foster innovation that will lead to better financial solutions for all participants.”

Digital Assets

Tokeny integrates Ownera to boost liquidity of tokenized assets

“The adoption of FinP2P will result in higher liquidity and better access to capital and assets by providing regulated firms with one secure point of connection to multiple digital asset networks across the globe.”

Digital Assets

BingX launches subsidy vouchers to cover user losses in copy trading

“With the introduction of copy trade subsidy vouchers, new users can easily try out trading strategies without incurring losses.”

Digital Assets

Talos expands sales team: Frank van Zegveld, Matt Houston, Hillary Conley

“The extensive leadership and industry expertise of these new hires will enable us to build long-lasting relationships as we continue to build out our global presence in EMEA and beyond.”

Executive Moves

FX and CFD broker Emporium Capital hires industry veteran Robert Woolfe as COO

His past experience within the FX and CFD industry includes top roles at Capital Index, London Capital Group, GKFX, ETX Capital, and IG.  “I’m delighted to be part of the Emporium Capital team and spearheading the brokerages global expansion plans”, he said about the appointment.

<