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

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 Brexit Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Read this Term Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders Read this Term.

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.