NYSE-owner ICE reports weak volumes for FX business in January 2022

abdelaziz Fathi

Intercontinental Exchange (NYSE:ICE), owner of the New York  Stock Exchange, today reported weak metrics across its FX and credit volumes for January, which averaged 33,000 contracts per day.

The Atlanta-headquartered futures exchange, which also operates clearing houses and serves OTC markets, said the figure was lower by 6 percent month-over-month from the number of FX contracts in December 2021. Further, the exchange operator registered a larger drop in volumes when compared to January 2021, having fallen by 18 percent year-on-year from 40,000.

The overall financial products, which also include interest rates and equity indices, were down by 11 percent year-on-year after revealing 1.95 million contracts per day compared to 2.18 million in January 2021. However, the figure rose by 12 percent over a monthly basis.

Turnover from ICE’s flagship energy contracts continued to print fresh highs in January, according to data released today, as the volatility increased.

For the month ending January 2022, the owner of the New York Stock Exchange saw its energy volume average 3.40 million contracts per day, which represents a rise by 30 percent month-on-month compared with 2.62 million contracts in December 2021. Across a yearly interval, the latest figures showed a 2 percent increase from 3.32 million contracts per day in January 2021.

ICE’s total ADV crossed 5.37 million contracts

In terms of ICE’s total commodities volume, the figure was also strong in its overall performance, amounting to an average of 3.78 million contracts per day in January 2022, which was up 31 percent from the month prior. The group’s commodities activity was skewed to upside year-on-year when weighed against 3.72 million contracts reported back in January 2022.

Overall, ICE’s aggregated volumes were characterized by mixed results across both the monthly and yearly intervals while volumes were broadly strong in January across most business segments.

During the reported month, ICE’s January average daily volume (ADV) for futures and options business had crossed the 5.37 million contracts per day, which corresponded to an advance of 24 percent month-over-month from 4.64 million per day in December 2021. However, this latest figure marks a 3 percent drop over January 2021 which came at 5.91 million contracts per day.

Read this next

Digital Assets

FINMA-regulated digital asset provider Taurus expands into Germany

This expansion follows recent moves by BaFin to accelerate the licensing of crypto custody services, aiming to boost market confidence. Following this, several new licenses were issued, notably to Commerzbank, making it the first full-service financial institution in Germany to receive a crypto custody license.

Inside View

Stocknet’s Nick Hall defends gamification as trading platform market set to hit $15.34b by 2030

“The growing popularity of gamified trading has the potential to tackle this financial literacy gap. Rather than simply giving users unfettered access to markets and letting them figure things out for themselves, platforms can offer virtual skill games and challenges to help educate traders and prime them for success.”

Inside View

Infographic: Interest rate and FX derivatives are driving rise of OTC derivatives market

These trends suggest a growing and evolving OTC derivatives market, with an increased focus on risk management and regulatory compliance. The rise in clearing rates, along with the increased initial margin requirements, reflects a more cautious approach to risk in the financial services industry.

Market News

Bank of Canada’s Final 2023 Policy Update on the Canadian Dollar and Future Monetary Landscape

The Bank of Canada’s final policy update for 2023, as reported by Bloomberg, had a relatively subdued impact on the performance of the Canadian dollar, especially when compared to the discernible market reactions following prior BoC policy decisions throughout the year.

Inside View

DTCC’s Systemic Risk Barometer Survey found 2024 US Presidential Election as a top risk

U.S. political uncertainty, particularly regarding the 2024 Presidential Election, has emerged as a key risk, with 51% of respondents highlighting it as a major concern. This reflects the potential impact of election outcomes on market conditions and the industry.

Executive Moves

Options Technology promotes Laura McCann to CFO

“Laura’s promotion to CFO is the next stage in our long-term strategy of building a world-class finance team servicing the global business from our Belfast office. Back in 2016, Jon took on the challenge of laying the groundwork for that vision. Laura has been an integral part of the strategy from day one.”

Digital Assets

Thailand’s crypto economy under the spotlight: a report by HashKey Capital

“I’m excited by the rapid expansion of Thailand’s Web3 sector. With over 3 million overall crypto users and 600% growth in the market in recent years, the dynamism in our DeFi and NFT sectors is clearly evident. Thailand is increasingly becoming a hotspot for digital nomads, drawn by our crypto-friendly policies, affordable living costs, vibrant food and beverage culture and diverse cultural landscape.”

Retail FX

Webull Australia offers 5.4% yield on uninvested cash

“US dollar money market funds are heavily regulated, meaning client funds are managed in a safe, reliable and trusted environment, which is of critical importance to us, and continues to remain top-of-mind for our clients.”

Digital Assets

Bybit welcomes Ethena’s USDe, a decentralized stablecoin utilizing delta-hedging staked Ether

“Our collaboration with Ethena Labs represents our commitment to solving some of the biggest challenges in crypto today, not least, the creation of a decentralized stablecoin. The integration of USDe on Bybit expands our stablecoin offerings, providing our users with an array of uncorrelated solutions accessible from our Unified Trading Account.”