Euronext’s FX volume remains in range-bound mode

abdelaziz Fathi

Pan-European exchange, Euronext has reported a 3 percent drop in the average daily volume on its spot foreign exchange market. The ADV figure stood at $21.07 billion in November 2022, which is down from October’s $21.5 billion.

Taking a year-over-year perspective, Euronext’s currency turnover was also lower from $21.1 billion reported back in November 2021.

In terms of its aggregated monthly turnover, Euronext FX reported $463 billion, which is up 2.6 percent from $453 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 higher by 5 percent. The figure was reported at 14.8 million contracts a day in November compared to 14.1 million in the month prior. It was down -21 percent when weighed against 2021’s turnover of 18.7 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 third-quarter revenues were virtually unchanged from a year earlier.

Trading revenue in Q3 2022 was lower by 6 percent on a yearly basis to €118 million, primarily driven by lower cash equity and MTS Cash volumes. The drop was partially offset by yield management and strong quarters for FX, derivatives and power trading.

Meanwhile, post-trade revenue grew 3.7 percent to €86.2 million thanks to the strong performance of the clearing activities of its Italian units. In addition, custody and settlement revenue scored a mild increase to €57.1 million even though the Nordic CSDs was less dynamic reflecting notably normalised levels of retail activity.

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