Euronext (EPA: ENX), one of the pan-European market infrastructure companies, reported a 58.8 percent jump in its Q1 revenue and income which came in at €395.7 million. The figures were dragged by the acquisition of Boursa Italiana last year.
On a pro-forma basis, that is including the Borsa Italiana’s financial performance for the entire comparative period, the revenue jump was 6 percent. Boursa Italiana brought in €129.4 million in the three months.
The total trading revenue of the group was €150.8 million, which came in 57.2 percent higher than the same quarter of the previous quarter. The platform offers several classes of trading instruments, including cash trading, derivatives trading, fixed income trading, forex trading and energy trading.
FX Business Boom
The FX trading demand on Euronext’s platforms saw an 18 percent jump between January and March. The FX revenue came in at €7.2 million, which was higher than the €6.1 million for Q1 of 2021. Additionally, the average daily volume (ADV) with FX trading jumped by 14 percent to $24.5 billion.
Moreover, it was the second best quarter, only after Q1 of 2020, for Euronext FX in terms of both revenue and ADV. The demand was driven by the positive impact of heightened overall volatility
Volatility
In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders can be successful in both low and high volatile environments, but the strategies employed are often different depending upon volatility. Why Too Much Volatility is a ProblemIn the FX space, lower volatile currency pairs offer less surprises, and are suited to position traders.High volatile pairs are attractive for many day traders, due to quick and strong movements, offering the potential for higher profits, although the risk associated with such volatile pairs are many. Overall, a look at previous volatility tells us how likely price will fluctuate in the future, although it has nothing to do with direction.All a trader can gather from this is the understanding that the probability of a volatile pair to increase or decrease an X amount in a Y period of time, is more than the probability of a non-volatile pair. Another important factor is, volatility can and does change over time, and there can be periods when even highly volatile instruments show signs of flatness, with price not really making headway in either direction. Too little volatility is just as problematic for markets as too much, we uncertainty in excess can create panic and problems of liquidity. This was evident during Black Swan events or other crisis that have historically roiled currency and equity markets.
In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders can be successful in both low and high volatile environments, but the strategies employed are often different depending upon volatility. Why Too Much Volatility is a ProblemIn the FX space, lower volatile currency pairs offer less surprises, and are suited to position traders.High volatile pairs are attractive for many day traders, due to quick and strong movements, offering the potential for higher profits, although the risk associated with such volatile pairs are many. Overall, a look at previous volatility tells us how likely price will fluctuate in the future, although it has nothing to do with direction.All a trader can gather from this is the understanding that the probability of a volatile pair to increase or decrease an X amount in a Y period of time, is more than the probability of a non-volatile pair. Another important factor is, volatility can and does change over time, and there can be periods when even highly volatile instruments show signs of flatness, with price not really making headway in either direction. Too little volatility is just as problematic for markets as too much, we uncertainty in excess can create panic and problems of liquidity. This was evident during Black Swan events or other crisis that have historically roiled currency and equity markets.
Read this Term.
Strong Non-Trading Demand
Additionally, Euronext pointed out that its non-trading-related business brought in 55 percent of the revenue in the quarter. Its post-trade revenue jumped to €95.8 million, which is 51.7 percent higher on a reported basis and 3.1 percent higher on a pro-forma basis. Also, clearing revenue increased to €31.9 million and custody and Settlement revenue to €63.9 million. Both of them jumped by 87.2 percent and 38.6 percent, respectively, on a reported basis.
Furthermore, the group’s advanced data services grew by 43.9 percent to €52.6 million.
The adjusted EBITDA of the group for the quarter came in at €252.2 million. It is 66.8 percent higher reportedly and 11.4 percent on a pro-forma basis. The reported net income came in 46.5 percent higher at €143.8 million, with the adjusted earnings per share at €1.54.
“During this first quarter of 2022, which was marked in Europe by the Russian invasion of Ukraine, Euronext’s business model remained resilient,” said Stéphane Boujnah, Euronext’s Chairman and CEO.
“We remained committed to pursuing successful integration while maintaining our continued cost discipline.”
Euronext (EPA: ENX), one of the pan-European market infrastructure companies, reported a 58.8 percent jump in its Q1 revenue and income which came in at €395.7 million. The figures were dragged by the acquisition of Boursa Italiana last year.
On a pro-forma basis, that is including the Borsa Italiana’s financial performance for the entire comparative period, the revenue jump was 6 percent. Boursa Italiana brought in €129.4 million in the three months.
The total trading revenue of the group was €150.8 million, which came in 57.2 percent higher than the same quarter of the previous quarter. The platform offers several classes of trading instruments, including cash trading, derivatives trading, fixed income trading, forex trading and energy trading.
FX Business Boom
The FX trading demand on Euronext’s platforms saw an 18 percent jump between January and March. The FX revenue came in at €7.2 million, which was higher than the €6.1 million for Q1 of 2021. Additionally, the average daily volume (ADV) with FX trading jumped by 14 percent to $24.5 billion.
Moreover, it was the second best quarter, only after Q1 of 2020, for Euronext FX in terms of both revenue and ADV. The demand was driven by the positive impact of heightened overall volatility
Volatility
In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders can be successful in both low and high volatile environments, but the strategies employed are often different depending upon volatility. Why Too Much Volatility is a ProblemIn the FX space, lower volatile currency pairs offer less surprises, and are suited to position traders.High volatile pairs are attractive for many day traders, due to quick and strong movements, offering the potential for higher profits, although the risk associated with such volatile pairs are many. Overall, a look at previous volatility tells us how likely price will fluctuate in the future, although it has nothing to do with direction.All a trader can gather from this is the understanding that the probability of a volatile pair to increase or decrease an X amount in a Y period of time, is more than the probability of a non-volatile pair. Another important factor is, volatility can and does change over time, and there can be periods when even highly volatile instruments show signs of flatness, with price not really making headway in either direction. Too little volatility is just as problematic for markets as too much, we uncertainty in excess can create panic and problems of liquidity. This was evident during Black Swan events or other crisis that have historically roiled currency and equity markets.
In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders can be successful in both low and high volatile environments, but the strategies employed are often different depending upon volatility. Why Too Much Volatility is a ProblemIn the FX space, lower volatile currency pairs offer less surprises, and are suited to position traders.High volatile pairs are attractive for many day traders, due to quick and strong movements, offering the potential for higher profits, although the risk associated with such volatile pairs are many. Overall, a look at previous volatility tells us how likely price will fluctuate in the future, although it has nothing to do with direction.All a trader can gather from this is the understanding that the probability of a volatile pair to increase or decrease an X amount in a Y period of time, is more than the probability of a non-volatile pair. Another important factor is, volatility can and does change over time, and there can be periods when even highly volatile instruments show signs of flatness, with price not really making headway in either direction. Too little volatility is just as problematic for markets as too much, we uncertainty in excess can create panic and problems of liquidity. This was evident during Black Swan events or other crisis that have historically roiled currency and equity markets.
Read this Term.
Strong Non-Trading Demand
Additionally, Euronext pointed out that its non-trading-related business brought in 55 percent of the revenue in the quarter. Its post-trade revenue jumped to €95.8 million, which is 51.7 percent higher on a reported basis and 3.1 percent higher on a pro-forma basis. Also, clearing revenue increased to €31.9 million and custody and Settlement revenue to €63.9 million. Both of them jumped by 87.2 percent and 38.6 percent, respectively, on a reported basis.
Furthermore, the group’s advanced data services grew by 43.9 percent to €52.6 million.
The adjusted EBITDA of the group for the quarter came in at €252.2 million. It is 66.8 percent higher reportedly and 11.4 percent on a pro-forma basis. The reported net income came in 46.5 percent higher at €143.8 million, with the adjusted earnings per share at €1.54.
“During this first quarter of 2022, which was marked in Europe by the Russian invasion of Ukraine, Euronext’s business model remained resilient,” said Stéphane Boujnah, Euronext’s Chairman and CEO.
“We remained committed to pursuing successful integration while maintaining our continued cost discipline.”
Source: https://www.financemagnates.com/institutional-forex/euronext-fx-sees-18-jump-in-q1-revenue-pushed-by-volatility/