ICE’s June Volumes Surge on Brexit Volatility, FX at Yearly Highs

Equity indexes, FX, and futures all threatened 2016 highs after the volumes in June showed a stark reversal from past

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

For the month ending June 2016, ICE’s futures and options business, as characterized by its average daily volume (ADV), was reported at 5.4 million per day, which represented a gain of 24.7% MoM from 4.3 million contracts per day in May 2016 – this snapped four straight months of diminishing volumes in this space and its highest figure since February 2016.

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The main culprit for such a steadfast reversal in volumes was the Brexit vote that gripped global financial markets in the end of June – a surprise outcome helped catapult volumes across virtually every exchange worldwide. By extension, over a yearly interval, June 2016’s ADV also saw a healthy increase by a margin of 9.4% YoY from 4.9 million per day in June 2015.

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Commodities Volumes on the Rise

As was the case with its futures business, ICE’s commodities ADV also managed to report a nice rebound in its figures, especially when measured against the past few months of downtrodden volumes. During June 2016, commodities ADV edged higher by 2.4% MoM to 2.8 million contracts per day from 2.7 million contracts per day in May 2016.

Compared to last year however, the latest numbers were also higher by a factor of 6.5% YoY from 2.6 million daily contracts in June 2015. During the month, precious metals prices saw an explosion in value as uncertainty surrounding the Brexit vote afflicted the market.

In addition, equity indices ADV on ICE came in at just 654,000 contracts per day in June 2016, undergoing a rise of 92.9% MoM from just 339,000 in May 2016, its highest figure in over two years.

FX ADV Explodes

Another area that saw a strong performance in volumes was ICE’s foreign exchange and credit volumes, which jumped to an ADV of 40,000 contracts per day in June 2016. The figure registered a gain of 73.9% MoM from 23,000 contracts per day in May 2016, having rivaled its highs of December 2015.

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