Euronext’s September Volumes Largely Pointed Higher, Commodities ADV Declines

Equities and derivatives were both higher in September, despite commodities ADV taking a step back MoM.

Euronext, Europe’s largest exchange, has reported its comprehensive trading volumes for the month of September 2016, having successfully notched a rebound off of its lowest figures of 2016 last month, looking to close the door on a Q3 downtrend in volumes according to a Euronext report.

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To recap, the past couple of months have been characterized as a downward spiraling cash order book value – the lone departure from this trend occurred in June 2016 with an influx of volatility via the Brexit referendum. Since bottoming out in August however, Euronext’s September figures have reversed this narrative, rebounding strongly.

In September 2016, Euronext’s average daily cash orders soared to just $7,142 million (€6,363 million), registering a growth of 31.3% MoM from $5,438 million (€4,844 million), in August 2016. The latest order book figures in September at Euronext also snapped a multi-month downtrend, reporting its highest figures in over two months.

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However, Euronext’s September 2016 volumes were lower over a YoY basis, with its latest statistics representing a loss of -21.1% YoY from September 2015.

Volumes Swell

Overall, a MoM groundswell in volumes was shared across other segments at Euronext in September 2016, which included its exchange-traded-funds (ETFs), having reported a volume of just $490.6 million (€437.0 million) from $376.0 million (€335.0 million) just one month ago, or 30.4% MoM. Compared to 2015 however, September 2016’s strength was diluted, coming in at -28.8% YoY.

By extension, Euronext’s equity index derivatives also were higher in September 2016, justifying a figure of 210,074 contracts for the month – this correlated to a gain of 32.5% MoM from 158,599 contracts in August 2016. Additionally, ADV of individual equity derivatives fell as well to 194,196 in September 2016 vs. 165,776 contracts in the month prior or 17.1% MoM from August 2016.

Finally, given a narrow range of precious metals prices during the previous month, and the US Federal Reserve largely holding off its rate hikes, Euronext saw a large decline in its commodities volumes for September 2016. Lower trading volumes afflicted the exchange’s ADV across commodities derivatives, came in at just 37,128 contracts for September 2016, or -19.7% MoM from just 46,253 contracts in August 2016.

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