ITG’s May Volumes Threaten Yearly Highs, ADV Rebounds off of Recent Lows

ITG (NYSE:ITG), an independent execution broker and financial technology provider, has reported its monthly statistics for May 2017. The figures reflect a strong bounce off a lackluster month prior, with several market drivers helping kindle an increase in trading volumes, en route to the highest levels seen since March.

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May 2017 was characterized by a more active market – with risk factors and jitters in abundance across both the US and Europe, trading volumes rose on a monthly basis, paring last month’s decline. In particular, political scandals in the US caused market fluctuations during the month, which ultimately gave way to select markets reaching all time highs by the end of the month. Meanwhile in Europe, many brokerages experienced heightened volumes due to the French elections, with the results restoring confidence in the markets.

Looking at May 2017, ITG reported its total volumes at 3.25 billion shares, compared with 2.40 billion in April 2017, or 35.4 percent higher on a month-over-month basis – this ascension was higher than most institutional venues, though generally in line with an upward trend for the month that saw a rebound off of April lows. ITG was no exception, seeing a substantial bounce off of April, which corresponded to its 2017 lows.

The latest reading also snaps what has been a mixed H1 2017 at ITG, with its volumes year-to-date making a downward trend. May and March are the only months this year that have registered a growth in volumes so far, which is attributed to isolated pockets of volatility in 2017. The group’s average daily volume (ADV) also came in at 147.6 million shares in May 2017, relative to an ADV of 126.7 million shares in April 2017, or 16.5 percent higher month-over-month. The number of trading days in May was 22, compared to just 19 in April.

May 2017 also featured the continuation of a high percentage of volume from lower-rate sell-side clients, which reduced the average revenue per share, notably when weighted against its Q1 2017 figures. ITG’s POSIT Alert, an indications matching network that notifies interested buy-side institutions of a block-size trading opportunity, reported an average daily volume of 64.0 million shares in May 2017, up from 61.8 million shares per day in April 2017, or 3.6 percent month-over-month.

Finally, during May 2017, ITG’s average daily trading commissions across its Canadian, European, and Asia-Pacific (APAC) businesses were up approximately 4.0 percent in US dollar terms on a combined basis, relative to Q1 2017.

Last month, ITG teamed up with financial technology provider, IRESS, ushering in a new alignment that will help streamline trading analysis and costs. The joint accord aimed to improve trading costs on the heels of heightened demand for Australian clients. Together with ITG, the groups will look to address a number of needs in the face of shifting regulatory requirements in Australia.