ICE FX Average Daily Volume down 11.5% in February Month-Over-Month and -41% YoY

The operator of the Intercontinental Exchange (ICE) has reported trading volumes for its exchanged traded FX Futures and options business,

__ICE__As reporting metrics are underway for the month of February by a number of financial services providers, the latest data comes from the operator of multiple exchanges and clearing houses under the IntercontinentalExchange Group parent company structure.

The company reported today the exchange traded volumes for its ICE business for February, reflecting average daily volume (ADV) for global derivatives dipping by 9% year-over-year, at 10.7 million contracts.

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The company reported its Foreign Exchange ADV totalling 23,000 contracts during February, a decrease of 3,000 contracts or 11.5% compared to January’s totals that Forex Magnates had previously covered. These FX totals consisted of volumes for its exchange trade Futures and Options business included on ICE’s popular U.S. Dollar Index.

February Looking Less Momentous Than January for Several FX Providers

The company has just released its record figures for 2013, and while January showed increased trading activity in FX related instruments globally, February has just been reported by a number of providers, including several major Japanese retail FX brokers, all reporting lower trading volumes for their February 2014 Foreign Exchange products.

This shows an emerging trend which reveals that the dip in FX volumes could be market-wide and not just broker or venue-specific, while at the same time some firms could still report higher month-over-month totals as these will undoubtedly vary.

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ICE’s parent company the IntercontinentalExchange Group, which merged with the New York Stock Exchange last year, has been on the move expanding its already wide reach globally, after having just closed on its acquisition of the Singapore Mercantile Exchange (SME), in order to grow its efforts in Asia – which remains a region of major interest for many companies. In addition, the company is still aiming to separate its Euronext business, ahead of an IPO for that division – if the spin-off succeeds.

The official ICE press released today said that commodity futures and options ADV increased 8% driven by continued strength in natural gas, up 18%, and agriculture contract volume, up 29% over the same period last year, showing positive growth when compared annually.

Financial futures and options ADV declined 20%, and was attributed primarily by a 24% decline in interest rate volumes driving the YoY drop, as expectations for changes in interest rate levels drove increased Euribor volumes.

In February, NYSE’s U.S. cash equities ADV increased 2% and Euronext’s European cash equities ADV increased 12% from the prior February.

Further coverage by Forex Magnates followed shortly after our initial publication of the news. Shares of ICE on the NYSE were little-changed following the release.

Highlights for the month of February, as per the official press release included the following points, showing among other things the the totals for the firms Trade Repository (TR), as EMIR reporting kicked in earlier last month in Europe :

  • ICE Trade Vault Europe processed around 4.5 million trades across energy, agricultural commodities, metals, credit, interest rates and equity derivatives on the first day of trade reporting.
  • ICE declared a quarterly $0.65 per share dividend payable on March 31, 2014 to shareholders of record as of March 17, 2014.
  • Monthly total volume and ADV records were established in ICE Sugar 11 and Coffee futures, and Emissions EUA and Rotterdam Coal options. Monthly ADV records were set in UK Natural Gas futures and WTI options.
  • Short Sterling futures, Canola futures and Dutch TTF Natural Gas futures established daily volume records of 2,055,972 contracts, 71,536 contracts and 20,630 contracts, respectively, during the month of February.
  • Open interest records were established in Low Sulphur Gasoil futures, ICE Cocoa futures, MSCI index futures, UK Natural Gas options, and ICE Newcastle, Richards Bay and Rotterdam Coal options contracts.
  • ICE finalized the acquisition of NYSE Euronext on November 13, 2013. For comparison purposes NYSE Euronext volumes are included for all periods covered.

A full copy of the press release was published on ICE’s Investor Relations (IR) website.

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