Euronext’s August Volumes Retreat to Lowest Levels of Year

Euronext saw an across the board decline in key metrics during August, in many cases striking fresh 2016 lows.

Euronext, Europe’s largest exchange, has released its latest trading volumes for the month of August 2016, having reported its lowest figures thus far in 2016 in the midst of a very tranquil trading month, according to a Euronext report.

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The past couple of months have showed a waxing and waning of cash order book value, helped in part by the seismic effect of the Brexit referendum as well as a lull in the weeks that followed. Despite paring the majority of its volumes gains last month, August’s figures look even bleaker by comparison.

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As such, Euronext’s average daily cash orders fell to just $5,409 million (€4,844 million), registering a decline of -21.8% MoM in August 2016 from $9,349 million $6,915 million (€6,193 million), in July 2016. The latest order book figures in August at Euronext also corroborated an intact multi-month downtrend that has now reached a 2016 low. Euronext’s August 2016 volumes were also lower over a YoY basis, with its latest statistics representing a sizable loss of -43.8% YoY from August 2015.

Across the Board Drop in Volumes

The trend was also shared across other segments at Euronext in August, including its exchange-traded-funds (ETFs), which reported a volume of just $374.1 million (€335.0 million) from $533.8 million (€478.0 million) just one month ago, or -29.9% MoM, a nearly congruent decline seen in July. Compared to 2015 however, August 2016’s weakness was even more pronounced, coming in at -54.9% lower YoY.

By extension, Euronext’s equity index derivatives saw its figures on the retreat in August 2016, justifying a figure of 158,599 contracts for the month – this correlated to a loss of -11.3% MoM from 178,900 contracts in July 2016. Additionally, ADV of individual equity derivatives fell as well to 165,776 in August 2016 vs. 200,324 contracts in the month prior or -17.2% MoM from July 2016.

Finally, given a firming of precious metals prices, Euronext’s commodities volumes for August 2016 were much higher, its lone positive for the month. The exchange’s ADV across commodities derivatives came in at 46,253 contracts for August 2016, or -30.5% MoM from just 66,535 contracts in July 2016.

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