FX trading has slowed down over the last couple of months due to growing uncertainty on the markets. Investors are moving their money into government bonds, and this has slowed down the volumes being traded on exchanges and other trading platforms.
Announced metrics and trading volumes for July 2019 show that Euronext has suffered a significant decline in year on year numbers. The exchange has also experienced a decline from its June metrics.
This decline in trading volumes has been also experienced by other exchanges across the world which confirms that the market itself is going through a slump which has affected Euronext.
Euronext has been moving up over the last few months but the exchange still reported a decline in year on year and month on month volumes. The exchange’s volumes come from Portugal, the UK, France, Belgium and the Netherlands.
The reported July volumes include all exchange activities from the Oslo Børs exchange, but that still wasn’t enough to pull the exchange’s volumes up. The Norwegian stock exchange was recently acquired by Euronext and incorporated into the multinational exchange.
The falling numbers
The European exchange giant experienced a decline in trading volumes and other metrics across the board. In comparison to June 2019 which had a total of $19.27 billion in trading volumes, July’s volumes went down by 12.8%.
Euronext’s FX trading platform, Fastmatch, also reported a decline in its trading volumes. The FX platform experienced $16.80 billion worth of exchanges in July, a 16.1% decline from the previous month.
Other segments of the exchange are also showing a downward trend. The average number of cash orders processed by the exchange fell by 10.5% on a year over year comparison. In July 2019, Euronext had €7.19 billion worth of cash orders.
Another sector of Euronext that is reflecting negative numbers is the equity index derivatives. On a month on month comparison, there was a 13.4% decline with a total of 502,577 contracts in July. Not only did the equity derivatives themselves go down but the ADV of individual equity derivatives also declined by 17.3% in July to fall at 228,018.
Euronext’s exchange traded funds (ETFs) also fell in July 2019. The ADV in this sector went down by 9.6% to €193 million. In June, the same segment reflected €227 million. The decline is also seen on a year over year comparison which shows a 15% retreat by the ETFs.