ITG’s Volumes See Muted Pullback in December, Retreating from Previous Highs

Seasonal factors were a large determinant of ITG's December volumes, largely holding onto its recent gains.

ITG (NYSE:ITG), an independent execution broker and financial technology provider, has released its latest tranche of monthly of statistics, this time corresponding to December 2016. Its US trading volumes were highlighted by an explosion in volumes relative to the month prior, helped by the US election and its aftermath.

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To recap, last month saw an explosion of trading volumes given an influx of volatility in US markets. The month saw the surprise electoral victory of Donald Trump, which jolted worldwide markets. By comparison, December was relatively tranquil, lacking any major market driving events, as well as steady onset of the Christmas season in the US.

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During December 2016, ITG reported its total volumes at 3.15 billion shares, compared with 3.33 billion in November 2016 or -5.4% MoM – this decline was characteristic of many other brokerages and venues, each of which suffered from a seasonal decline and lower volatility in the month.

Seasonal Pullback

This trend also extended to ITG’s average daily volume (ADV) of 149.9 million in December 2016, compared to 158.6 million in ADV during November 2016, or -5.5% MoM. The amount of trading days in December was 21, unchanged from 21 in November 2015.

However, year-to-date, the ADV was also much higher in November, constituting an average of 138.1 million, virtually unchanged from 137.0 million last month. During December 2016, ITG’s average daily trading commissions across its Canadian, European, and Asia-Pacific (APAC) businesses were also up approximately 23.0% in US dollar terms on a combined basis, relative to Q3 2016.

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