Euronext FX Reports 20pct Drop in Monthly Trading Volumes

The FX trading venue of Euronext, which operates the biggest pan-European exchange, has reported trading volumes for July 2020, which came off strong metrics it set in the month prior. Euronext FX, formerly FastMatch, is reporting a total of $408 billion that has changed hands the previous month, representing a 16 percent decline from the $484 billion reported back in June 2020.

In addition, the exchange’s institutional FX trading venue saw its average daily trading volumes amounting to $17.7 billion in July 2020, down 20 percent month-over-month from $22 billion the previous month.

Taking a year-over-year perspective, Euronext’s total currency turnover was up five percent from $386 billion in July 2019, while its ADV figure advanced with the same percentage compared to $16.8 billion a year ago.

Following the boom in activity seen at major FX trading venues in March, the institutional ECNs were in a sea of red over the subsequent months. Almost all institutional platforms reported 50 percent drops in their monthly volumes.

In June, however, FX turnover rebounded with Euronext’s monthly figure approaching the $500 billion. That marks the second best reading for Euronext FX’s volumes after the platform posted a record $839 billion in March 2020. At one point this month, Euronext had a record day of FX trading with 54.6 billion worth of currency trades changing hands on March 9. The trading at this time was driven by investor fears that the coronavirus may put a damper on the world economy.

Foreign exchange yields €6.6 million in revenues

Over a quarterly timetable, Euronext FX has reported an average daily volume on its spot foreign exchange market at $20.6 billion for the Q2 2020, up 18 percent compared to a year ago. The spot foreign exchange division yielded €6.6 million in revenues, up 21 percent from €5.4 million in Q2 2019. Spot FX trading generated €8 million of revenue in the first quarter of 2020.

Founded as a joint venture by the Swiss bank Credit Suisse and FX broker FXCM in 2012, Euronext FX (formerly FastMatch) provides an electronic currency trading platform mostly for institutional clients such as banks, asset managers and hedge funds. The FX unit of the franco-dutch exchange operator operates an electronic communication network (ECN) for currency trading and has matching engines in New York, London, Tokyo, and Singapore.

(Photo: pxfuel)

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