ICE’s August Metrics Strike Yearly Lows, FX Falls to Lowest Level Since 2014

FX, commodities, and equities were all pointed lower in August, having failed to snap out of a recent downtrend.

Intercontinental Exchange (NYSE: ICE), an international network of exchanges and clearing houses, has released its latest aggregated monthly volumes for August 2016, which saw an abrupt reversal across virtually every component of its business, according to an ICE statement.

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For the month ending August 2016, ICE’s futures and options business, as characterized by its average daily volume (ADV), was reported at 4.1 million per day, which corresponded to a decline of -4.7% MoM from 4.3 million contracts per day in July 2016 – this latest figure is the exchange’s lowest reading in 2016, having completely pared all advances seen in June on Brexit volatility.

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The narrative was virtually congruent over a yearly timetable, with August 2016’s ADV withering by a factor of -4.7% YoY from 4.3 million per day in August 2015. ICE’s latest futures and options volumes are the lowest of any month since July 2015.

Commodities Volumes Pointed Lower

ICE also saw a decline in its commodities volume, with ADV reporting a figure of 2.5 million contracts per day in August 2016, or -6.0% MoM from 2.7 million contracts per day in July 2016. During August 2016, commodities ADV also dwindled -6.3% YoY from 2.71 million contracts per day during August 2015. Over the past month, precious metals markets have been devoid of any big moves with markets previously in wait-and-see mode over a possible September rate hike from the US Federal Reserve.

Moreover, equity indices ADV on ICE came in at just 292,000 contracts per day in August 2016, undergoing a fall of -15.1% MoM from 344,000 in July 2016, its lowest figure since April 2016. The drop was even more pronounced relative to August 2015, having fallen -19.1% YoY from 361,000 contracts per day.

FX ADV Strikes Fresh Low

Another area that saw a weak performance in term of volumes in August was ICE’s foreign exchange (FX) and credit volumes, which retreated to an ADV of just 21,000 contracts per day in August 2016 – its lowest figure in over two years. The volumes registered a decline of -8.7% MoM from 23,000 contracts per day in August 2016, off -63.2% YoY from 57,000 contracts per day in August 2015.

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