ICE FX ADV Cannot Hold Onto Recent Gains, Falls Double-Digits MoM

Intercontinental Exchange (NYSE: ICE), a global network of exchanges and clearing houses, has just reported its volumes for January 2016, having seen a marked retreat across its foreign exchange (FX) average daily volume (ADV), according to a recently released ICE statement.

For the month ending January 2016, futures and options ADV came in at 6.1 million per day, which constituted a rise of 29.8% MoM from 4.7 million contracts per day in December 2015, easing last month’s losses and overcoming what had been several months of uneven figures. Moreover, over a yearly timeframe, January 2016’s volumes also reported a strong push above its 2015 counterpart, yielding a 15.1% YoY climb from just 5.3 million contracts in January 2015.

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By extension, commodities ADV were equally robust in January 2016, up 38.4% MoM, with a figure of 3.6 million contracts per day, vs. 2.6 million contracts in December 2015. This surge can be explained by heightened volatility in commodities markets, with respect to precious metals and crude oil, each of which have been the subject of wild fluctuations so far in the new year. Additionally, equity indices ADV on ICE came in at just 481,000 contracts per day in January 2016, incurring a fall of -13.3% MoM from 555,000 in December 2015.

FX Volumes Pointed Lower

ICE’s foreign exchange (FX) and credit volumes were notably downtrodden in January 2016 – an ADV of 39,000 contracts for the month, having corresponded to a loss of -17.0% MoM from 47,000 contracts per day in December 2015, erasing what had been a strong rebound last month.

When viewed under the lens of last year’s figures however, January 2016’s ADV of 39,000 contracts also represents an even broader YoY decline, notching a loss of -26.4% YoY from 53,000 contracts per day in January 2015.