ITG’s Trading Volumes Dip Lower in January

Despite an uptick in volatility and favorable market conditions, ITG's volumes retreated in January.

ITG (NYSE:ITG), an independent execution broker and financial technology provider, has disclosed its latest batch of monthly of statistics for the month of January 2017. The latest figures underscored a month-over-month decline at the brokerage, which saw volumes trend lower despite higher volatility.

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December’s volume pullback was largely attributed to a dearth of volatility as well as a seasonal lull in terms of trading and market activity. Moreover, the month prior featured the US election, which explains the decline in overall volumes.

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This was not the case with January 2017, as volatility was firmly higher on account of Donald Trump taking office in the United States, which has since sparked trading activity worldwide. During January 2017, ITG reported its total volumes at 2.78 billion shares, compared with 3.15 billion in December 2016 or -11.7 percent month-over-month – this decline was however seen at other institutional venues and was not unique to ITG.

The downward performance now constitutes a consecutive monthly trend at ITG, which extended to the group’s average daily volume (ADV) of 138.9 million in January 2017, relative to 149.9 million in ADV during December 2016, or -7.3 percent month-over-month. The amount of trading days in January was 20, less than the 21 days in December 2016.

During December 2016, ITG’s average daily trading commissions across its Canadian, European, and Asia-Pacific (APAC) businesses were also down approximately -1.0 percent in US dollar terms on a combined basis, relative to Q4 2016.

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