Euronext Sees MoM Uptick in Spot FX Trading in January 2019

Euronext, a leading exchange in the Eurozone, has announced its trading volumes for the first month of 2019 this Wednesday, showing mixed results on both a monthly and yearly basis.

For the Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term, foreign exchange (Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term) spot trading is conducted via FastMatch, a Euronext company since August of 2017. During the month of January, the average daily volume for spot FX trading was $20.1 billion.

When compared to the previous month, December of 2018, this figure is up by 4.9 percent. However, when compared to the same time period last year, this is down by 3.5 percent.

Derivatives trading on Euronext falls in January

Moving onto derivatives trading, the overall average daily volume on derivatives in January reached 523,542 contracts. Unlike spot FX trading, which recorded a monthly gain, this is down on both a monthly and yearly comparison by 19.6 percent and 6.7 percent respectively.

Breaking this down, the average daily volume of equity index derivatives during the first month of 2019 was 214,202 contracts. While this is up from the same month last year by 7.3 percent, it is down by 25 percent from the previous month.

For individual equity derivatives, the average daily volume came in at 268,304 contracts. This figure is lower across the board - 14.4 percent year-on-year and 18.2 percent compared to December of 2018.

The average daily volume of commodity derivatives managed to climb by 8.2 percent from the previous month to hit 41,036 contracts. However, this is still down by 14.5 percent on an annual comparison.

Cash trading on Euronext also posted lackluster results during the month of January. Specifically, the average daily transaction value on the Euronext cash order book was €6.71 billion. This is 16 percent less than that achieved in January of 2018 and a fall of 15.1 percent from the previous month.

Euronext will publish its full-year results for 2018 next Thursday on the 14th of February 2019 after market close, the company also announced today.