Nasdaq’s US Volumes Explode in November on Election-Induced Volatility

Nasdaq is the latest exchange to see a healthy boost in its volumes during November amidst the US election fallout.

Nasdaq (Nasaq:NDAQ), the second-largest exchange in the world by market capitalization, has reported its monthly composite of trading volumes and metrics for the month ending November – the reading pared last month’s volumes retreat en route to a 2016 high, per a recent Nasdaq statement.

In November 2016, Nasdaq erased all of its volumes losses seen in the month prior across its equity derivatives business. The paramount driver for this force was the US election in November, which stimulated markets and ushered in one of the most volatile periods of 2016.

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This was indicated by a figure of 129.0 million contracts, surging by a margin of 20.6% MoM from 107.0 million contracts in October 2016, its new highest performance to date in almost two years. The latest measure also beat November 2015’s figure of 78.0 million, exploding 65.4% YoY.

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The narrative was also upbeat in Europe over the same MoM period, with Nasdaq’s European equity derivatives seeing healthy uptick, reporting just 7.2 million contracts in November 2016, up 2.9% MoM from 7.0 million contracts in October 2016. This rise was however nullified over a YoY basis, justifying a change of -4.0% YoY from 7.5 million contracts in November 2015.

FICC Business Mixed

Nasdaq’s November 2016’s figures were markedly higher across its Fixed Income, Currencies and Commodities business (FICC). As such, US fixed income volume (in billion USD traded) yielded $2,264 for the month ending November 2016 – its highest outcome in 2016. This correlated to a rise of 34.3% MoM from $1,686 in October 2016 – the latest figures also show a rise of 46.9% YoY from $1,541 in November 2015.

In terms of European fixed income, November 2016’s readings were also slightly improved, showing a steady climb in its volumes MoM. November 2016 saw 1.9 million contracts, up 5.6% MoM from 1.8 million contracts in October 2016 though lower by a margin of -9.5% YoY from 2.1 million contracts in November 2015.

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