Euronext Closes Out Year Holding onto Recent Volumes Gains, ETFs Pointed Lower

Euronext closed out the year strong with a solid Q4 performance in its order book volumes.

Euronext, one of Europe’s largest exchanges, has reported its total trading volumes for the month ending December 2016, which suffered a slight decline in its overall order book figures. This was due in large part to a more normalized state of volatility, which rescinded ahead of the end of the year as well as the absence of any large market drivers.

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The past month saw the passage of the US presidential election, which had managed to spark volumes at Euronext to one of its highest levels of the year. Its recent pullback in December, while muted, was commensurate with a decline seen across others in the industry.

In particular, during December 2016, Euronext’s average daily cash orders came in at $7,577 million (€7,239 million), retreating -1.3% MoM from $7,677 million (€7,334 million) in November 2016.

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The latest order book figures in December at Euronext, while pointed marginally lower, still held onto the majority of its volumes gains achieved last month. The primary impetus behind the figures was the lack of any major market events, as well as the onset of the Christmas holiday and year-end.

Volumes See Varied Decline

The quarter has seen a large uptick in activity at Euronext, especially after a muted Q3 2016. Across other segments at Euronext in December 2016, which included its exchange-traded-funds (ETFs), the exchange reported a volume of $630.2 million (€602.0 million) from $646.9 million (€618.0 million) just one month ago, or -2.6% MoM. Compared to 2015 however, December 2016’s performance was much lower, coming in at -19.0% YoY.

Euronext’s equity index derivatives also were higher in December 2016, justifying a figure of 205,128 contracts for the month – this correlated to a pullback of -13.1% MoM from 235,942 contracts in November 2016. Furthermore, ADV of individual equity derivatives grew to 231,943 in December 2016 vs. 255,622 contracts in the month prior or -9.3% MoM from November 2016.

Finally, precious metal prices failed to see any large movements throughout the month – consequently, Euronext saw a decline in its commodities volumes for December 2016. Lower trading volumes were evident across the exchange’s ADV in its commodities derivatives, which came in at 38,756 contracts for December 2016, or -24.8% MoM from just 51,542 contracts in November 2016.

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