TMX Group Sees Waning Volumes in July, Equities Fall Double Digits

TMX Group Limited has reported its monthly trading statistics and figures for July 2016, which includes the aggregated results for the Toronto Stock Exchange Stock Exchange A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the fin A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the fin Read this Term, TSX Venture Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term, TMX Select, Alpha, Montreal Exchange (MX), and NGX. Overall, the group’s volumes were pointed lower during the month, seeing sizable declines across volumes, values, and transactions, according to a TMX report.

Take the lead from today’s leaders. FM London Summit, 14-15 November, 2016. Register here!

TMX Group and its subsidiaries operate both cash and derivative markets and clearinghouses across multiple asset classes, including equities, fixed income and energy, among others. The network of exchanges had shown a general uptrend in its volumes throughout H1 2016, though this trend did not continue into July

Uneven Performance

During July 2016, TMX and all of its marketplaces saw equities volumes of 11.0 billion, falling by a margin of -20.4% MoM from 13.9 billion in June 2016. Looking at a yearly timetable however, the performance in overall equities volume was inverted into positive territory, rising 8.9% YoY from 10.1 billion in July 2015.

Across all three exchanges, the total cash value in July 2016 came in at $109.3 billion, falling -25.8% MoM from $147.5 billion in June 2016. The latest cash value in June 2016 across the exchanges edged slightly lower when measured against its 2015 counterpart, retreating less than -8.8% YoY from $119.9 billion in July 2015.

Looking at a year-to-date (YTD) perspective, all three exchanges experienced mixed performances across its overall volume (9.2%), cash value (-1.6%), and transactions (-5.9%).

In terms of specific exchanges, the Toronto Stock Exchange (TSX) experienced a downtrodden performance, netting a volume of $6.6 billion in July 2016, rescinding -24.1% from $8.7 in June 2016, along with a YoY boost of 6.4% from $6.2 in July 2015.

TMX Group made headlines earlier this week when it reported its Q2 financial results, which showed climbing revenues, which were boosted by a drop in operating expenses, en route to a figure of $194.6 million for the quarter.