Beneficiaries in Ugly Market: Euronext FX Also Posts Record Volumes

Euronext FX reported a record $839 billion in March 2020, up 80 percent from the $464 billion in February.

Euronext, which operates the biggest pan-European exchange, had a record day of FX trading on March 9, with 54.6 billion worth of currency trades changing hands. At Cboe, parent of the Chicago Board Options Exchange as well as institutional FX platforms in the US and abroad, there was also a significant jump in trading.

In terms of its aggregated monthly turnover, Euronext FX reported a record $839 billion in March 2020, up 80 percent from the $464 billion that was reported in February. This figure was also higher 90 percent from $441 billion in March 2019.

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Meanwhile, the average daily volume on the spot foreign exchange market of Euronext stood at $36.5 billion, up 57 percent compared to February’s $23.2 billion. On a yearly timetable, the figure is higher by 73 percent, from $20.1 billion reported back in 2019.

That marks the second consecutive record and the best month ever for Euronext FX, formerly FastMatch.

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The average trading volume for the month prior to February was below the $20 billion mark, but volume jumped to record levels in the last two months on frenzied buying and selling activity. The trading is driven by investor fears that the coronavirus may put a damper on the world economy.

Brokers benefit from boom in trading

Looking for beneficiaries in an ugly market, Euronext’s numbers also followed stronger trading volumes from rival foreign exchange venues as concerns over the economic impact from the coronavirus outbreak sent investors hunting for instruments that limited risk exposure.

So far this month, Cboe FX, FXSpotStream, and Integral have reported new peaks for activity, and all platforms have recorded strong year-on-year growth.

That wave of activity at the exchanges is also pushing up trading brokers’ stocks, despite the downward pressure on the overall stock market. For instance, NASDAQ-listed Interactive Brokers saw its share price rising from all-time lows hit at $35 last week to close at $43.69.

Most retail trading firms, including privately-held ones such as Robinhood, were also likely benefited from the boom in activity, reflected at least by their platform’s outages.

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