ICE’s FX, Futures Volumes Soar in September, Equities Strike 2016 Highs

Equity indices jumped to two year highs with FX also exploding MoM during September.

Intercontinental Exchange (NYSE: ICE), an international network of exchanges and clearing houses, has reported its latest aggregated volumes for the month ending September 2016, which was characterized by a reversal off of 2016 lows across multiple segments of its business, according to an ICE statement.

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During September 2016, ICE’s futures and options business, as reflected by its average daily volume (ADV), was reported at 5.2 million per day, which corresponded to a growth of 27.6% MoM from 4.1 million contracts per day in August 2016 – this latest figure is the exchange’s highest reading since June 2016, fueled by Brexit volatility.

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September 2016 also was influenced by heightened volatility, with respect to a tranquil August. The fallout from the Fed’s decision not to raise rates also affected volatility throughout global markets. Over a yearly timetable, September 2016’s ADV was also noticeably higher by a factor of 10.6% YoY from 4.7 million per day in September 2015.

Commodities Volumes Rebounds

ICE also saw a staunch reversal in its commodities volume, with ADV jolting higher to 3.0 million contracts per day in September 2016, up 20.0% MoM from 2.5 million contracts per day in August 2016. During September 2016, commodities ADV also rose 11.1% YoY from 2.7 million contracts per day during September 2015. Over the past month, precious metals markets were in a state of flux following the decision to not raise rates. Gold prices had also managed to break out of a tight consolidation.

Moreover, equity indices ADV on ICE came in at just 664,000 contracts per day in September 2016, its highest reading in two years. Relative to last month, the figure also soared by 127.4% MoM from 292,000 in August 2016, which had been its lowest value since April 2016.

FX ADV Spikes

Another area that saw a strong performance in term of volumes in September was ICE’s foreign exchange (FX) and credit volumes, which also jumped to an ADV of just 36,000 contracts per day in September 2016, easily besting a previous low of 21,000 in August 2016. The volumes registered a growth of 71.4% MoM though were down -32.1% YoY from 53,000 contracts per day in September 2015.

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