Euronext’s January Volumes Incur Across-the-Board Decline in January

Euronext experienced a decline in all of its volumes segments during January with the exception of commodities.

Euronext, one of Europe’s largest exchanges, has disclosed its monthly total trading volumes for the first month of the New Year. The latest figures in January 2017 underscore a sizable decline over a monthly and yearly basis, bucking an industry trend, according to a Euronext report.

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Most institutional and retail exchanges experienced an uptick in volumes during January 2017. This was driven by a combination of more normalized volatility that had been lower due to seasonal factors, with markets also grappling with the wild first few weeks of Donald Trump’s presidency in the United States.

During January 2017, Euronext’s average daily cash orders came in at $6,927 million (€6,458 million), retreating -10.8 percent month-over-month from $7,765 million (€7,239 million) in December 2016. This decrease was echoed over a yearly timeframe, retreating by -25.6 percent year-over-year from January 2016.

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Volumes Incur Widespread Decline

The latest figures snap what had been an ascending level of trading activity at Euronext, a trend that was largely intact in Q4 2016. However, other segments at Euronext in January 2017, which included its exchange-traded-funds (ETFs), were reported at a volume of $479.5 million (€447.0 million), compared to $645.6 million (€602.0 million) just one month ago, or -25.7 percent month-over-month.

Extending this analysis further, January 2017’s performance was much lower, coming in at -44.6 percent year-over-year from January 2016. Euronext’s equity index derivatives also were unable to capture the same level as the month prior, justifying a figure of 199,736 contracts for January 2017 – this correlated to a pullback of -26.3 percent month-over-month from 205,128 contracts in December 2016.

Furthermore, ADV of individual equity derivatives fell to 200,583 in January 2017 vs. 231,943 contracts in December 2016 or -13.5 percent month-over-month from December 2016.

Finally, precious metal prices finally snapped out of a narrow consolidation, which experienced an uptick due to risk aversion in markets. As such, Euronext recorded a growth in its commodities volumes for January 2017. The higher trading volumes were evident across the exchange’s ADV in its commodities derivatives, which came in at 45,104 contracts for January 2017, or 16.4 percent higher month-over-month from just 38,756 contracts in December 2016.

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