Euronext FX volume makes strong rebound by 30% in September

Euronext, which operates the biggest pan-European exchange, had one of its busiest months across its institutional FX platform in September 2022.

In terms of its aggregated monthly turnover, Euronext FX reported $533 billion, which is up 18 percent from $452 billion that changed hands in the previous month. Taking a year-over-year perspective, Euronext’s currency turnover was higher by a third from $407 billion reported back in September 2021.

Meanwhile, the average daily volume on the spot foreign exchange market of Euronext stood at $24.12 billion, which is up 3.1 percent compared to August’s ADV of $19.66 billion. On a yearly timetable, the figure was also higher by 30.6 percent from $18.5 billion reported back in September 2021.

On a quarterly scale, the average trading volume in Q3 2022 was comfortably above the $21.7 billion mark, up 24 percent from $17.5 billion in the comparable period the year earlier.

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.