Nasdaq’s Equities and FICC Business Stalls in January 2016

Nasdaq's US and European equities business could not get back on track in January, with European FICC volumes diving MoM.

Nasdaq (Nasdaq:NDAQ), the second-largest exchange in the world by market capitalization, has reported its trading volumes and metrics for the month ending January 2016, having shown a relative stagnation in its global equities business, according to a Nasdaq statement.

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During January 2016, Nasdaq was unable to shake out of a tight consolidation afflicting the exchange since November – this was reflected in a figure of just 76.0 million contracts across its US equities derivatives business, unchanged MoM from 76.0 million contracts in December 2015. This figure is much weaker however, when measured across a yearly timeframe, with January 2016’s metrics constituting a fall of -16.5% YoY from 91.0 million contracts in January 2015.

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By extension, Nasdaq’s European equity derivatives also posted lackluster results, falling to 8.9 million contracts in January 2016, down -2.2% MoM from 9.1 million contracts in December 2015. This decline was pared however over a yearly period, securing a slight 2.3% YoY growth from 8.7 million contracts in January 2015.

FICC Business Shows Poor Results

January 2016’s results noticeably higher across Nasdaq’s Fixed Income, Currencies and Commodities business (FICC). In particular, US Fixed income volume (in billion USD traded) yielded $2,061 for the month ending January 2016. This corresponds to a robust climb of 22.6% MoM from $1,681 in December 2015 – the latest figures also illustrate a fall of -30.15 YoY from $2,952 in December 2015.

In terms of European fixed income however, January 2016 was a different matter entirely, orchestrating a sizable dive in volumes MoM. January 2016 saw just 1.6 million contracts, down -38.4% MoM from 2.6 million contracts, in December 2015 and -15.8% YoY from 1.9 million contracts in January 2015.

Last month, Nasdaq (Nasdaq:NDAQ) disclosed its Q4 2015 financial results, capping off a mixed year of revenues and other pertinent figures across its global business. More specifically, Nasdaq’s Q4 2015 net revenues came in at $536 million, up 4.0% YoY from $517 million in Q4 2014. By and large this figure was driven by a $37.0 million operational gain across its operations, despite the prevalence of a -$18.0 million negative impact incurred from foreign exchange (FX) rates.

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