ICE’s Futures and FX ADV Strike 2016 Lows in April

ICE's commodities ADV was the lone bright spot in April as FX and futures volumes sunk to the year's lows.

Intercontinental Exchange (NYSE: ICE), an international group of exchanges and clearing houses, has reported its latest tranche of monthly volumes for April 2016, having failed to allay last month’s decreases en route to another decline across its future business, according to an ICE statement.

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In particular, April 2016 struck a very similar narrative in terms of ICE’s futures and options business compared to last month – average daily volume (ADV) came in at 4.6 million per day, which correlated to a loss of -8.2% MoM from 4.9 million contracts per day in March 2015, marking the third straight month the exchange has suffered sizable declines in this space.

By extension, over a yearly timetable, April 2016’s ADV managed to yield a double digit increase above its 2015 counterpart with a 15.0% YoY gain in volumes from just 4.0 million contracts in April 2015.

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Commodities Business Mitigates Overall ADV Losses

Moving to other asset classes, ICE’s commodities ADV did manage to orchestrate a nice rebound, fueled in large part by fluctuating commodities prices, namely precious metals. During April 2016, commodities ADV jumped 10.7% MoM to 3.1 million contracts per day from 2.8 million contracts per day in March 2016. Compared to last year however, the figure was also higher by a margin of 24.0% YoY from 2.5 million daily contracts in April 2015.

Furthermore, equity indices ADV on ICE came in at just 355,000 contracts per day in April 2016, witnessing an ascension of 78.3% MoM from just 199,000 in March 2016, completely erasing last month’s pullback. Depsite the optimism and latest strength, the figure still pales in comparison to April 2015, which saw an ADV of 626,000 contracts.

FX ADV Tanks

After last month’s rebound in foreign exchange (FX) and credit volumes, ICE once again saw a declining ADV, this time sinking to just 26,000 contracts per day in April 2016. The figure is reflective of a loss of -25.7% MoM from 35,000 contracts per day in March 2016. The latest figures in April 2016 are also a far cry from its 2015 counterpart, plunging -55.9% YoY from 59,000 contracts per day in April 2015.


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