Euronext reports lower FX, derivatives volume for July

Pan-European exchange, Euronext has reported a mild drop in the aggregated monthly turnover on its spot foreign exchange market. The figure stood at $492 billion in July, which is down 4-.3 percent from June’s $514 billion.

Taking a year-over-year perspective, Euronext’s total currency turnover was 9.4 percent higher from $449 billion reported back in July 2022.

In terms of its average daily volume, Euronext FX reported $23.4 billion, which is virtually unchanged from 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 8.7 percent. The figure was reported at 12.1 million contracts a day in July compared to 13.3 million in June. Additionally, it was down 6.2 percent when weighed against 2022’s turnover of 12.9 million contracts.

During the second quarter of 2023, derivatives trading volumes decreased across the offering with average daily volume on financial derivatives at 595,206 lots, down -19% from Q2 2022. However, Euronext revenue capture on derivatives trading was €0.35 per lot for the second quarter of 2023, reflecting a positively geared volume mix and solid revenue capture.

On the FX business front, Euronext reported an average daily volume on its spot foreign exchange market at $21.6 billion for Q2 2023, down 45.7 percent compared to a year ago. The spot foreign exchange division yielded €6.1 million in revenues, down 8.6 percent from €7.3 million in Q2 2022.

In Q2 2023, Euronext reported total revenue and income of €368.1 million, down 1.8% compared to Q2 2022. However, on a like-for-like basis at constant currencies, the decline was milder at 0.5%. The company’s non-volume-related business played a crucial role in offsetting the impact of lower trading volumes, accounting for 61% of Q2 2023 revenue, up from 59% in the same period last year.