Euronext’s Markets Sink Across Board in April

The European New Exchange Technology (Euronext), a pan-European exchange group operating regulated markets in Belgium, France, and Italy, among other countries, saw major declines in its markets between March and April 2022.

The falls span the cash, derivatives, and foreign  exchange  markets, according to the latest monthly volume data published by the group on Friday.

The Cash Market

According to Euronext, the transaction value of all buy and sell trades, including the values of reported trades but minus fixed income, sank -42% from €391 million to €226 million between March and April 2022. However, when compared to April 2021, there’s just a slight difference that stands at a 0% change year-on-year (YoY).

In terms of daily average, the average daily volume (ADV) of all buys and sell trades dropped by -30% month-on-month (MoM) from €17,006 million to €11,900 million.

When considered based on the total number of transactions of buy and sell trades (minus fixed income trades), total trades in the cash market fell by -40% from 113 million trades in March to 68 million trades in April. However, if contrasted against April 2021’s record, there’s no significant difference.

On the other hand, in terms of daily average, the average daily volume (ADV) of buy and sell trades declined by-27% between March April, falling from 4.9 million to 3.6 million.

The Derivatives Market

Euronext’s derivatives market declined by -26.6% to 14 million volumes (in lots) from 19.5 million volumes recorded in March. On a YoY basis, however, the shortfall is a relatively marginal -6.6%.

These declines take into consideration falls in the equity, index, individual equity, and commodity sub-markets and across instrument types, futures and options.

While the index market sank by -29.6% MoM, individual equity and commodity markets plummeted by -23.2% and -36.2% respectively.

Euronext FX

The forex spot volume of Euronext FX, formerly known as FastMatch, also plunged by -13.9% to US$517 million from US$600 million.

On the contrary, when compared to the output in April last year, the  forex  spot market rose by +31.7%.

The same conditions are obtainable, albeit on a smaller scale, when the forex market is observed through the lens of ADV. Euronext FX’s ADV nosedived -5.7% between March and April 2022 from US$ 26 million to US$ 24 million.

The Euronext’s monthly volume data does not provide context as to the causes of these declines. However, earlier in February, Finance Magnates reported that while the group’s total monthly volumes on all products rose by +6.4% MoM, individual equity futures saw the largest decline in that month as it went down by -46.1%.

The uncertainty following Russia’s invasion of Ukraine and the sanctions that followed led many traders to remain on the fence at the time.

The European New Exchange Technology (Euronext), a pan-European exchange group operating regulated markets in Belgium, France, and Italy, among other countries, saw major declines in its markets between March and April 2022.

The falls span the cash, derivatives, and foreign  exchange  markets, according to the latest monthly volume data published by the group on Friday.

The Cash Market

According to Euronext, the transaction value of all buy and sell trades, including the values of reported trades but minus fixed income, sank -42% from €391 million to €226 million between March and April 2022. However, when compared to April 2021, there’s just a slight difference that stands at a 0% change year-on-year (YoY).

In terms of daily average, the average daily volume (ADV) of all buys and sell trades dropped by -30% month-on-month (MoM) from €17,006 million to €11,900 million.

When considered based on the total number of transactions of buy and sell trades (minus fixed income trades), total trades in the cash market fell by -40% from 113 million trades in March to 68 million trades in April. However, if contrasted against April 2021’s record, there’s no significant difference.

On the other hand, in terms of daily average, the average daily volume (ADV) of buy and sell trades declined by-27% between March April, falling from 4.9 million to 3.6 million.

The Derivatives Market

Euronext’s derivatives market declined by -26.6% to 14 million volumes (in lots) from 19.5 million volumes recorded in March. On a YoY basis, however, the shortfall is a relatively marginal -6.6%.

These declines take into consideration falls in the equity, index, individual equity, and commodity sub-markets and across instrument types, futures and options.

While the index market sank by -29.6% MoM, individual equity and commodity markets plummeted by -23.2% and -36.2% respectively.

Euronext FX

The forex spot volume of Euronext FX, formerly known as FastMatch, also plunged by -13.9% to US$517 million from US$600 million.

On the contrary, when compared to the output in April last year, the  forex  spot market rose by +31.7%.

The same conditions are obtainable, albeit on a smaller scale, when the forex market is observed through the lens of ADV. Euronext FX’s ADV nosedived -5.7% between March and April 2022 from US$ 26 million to US$ 24 million.

The Euronext’s monthly volume data does not provide context as to the causes of these declines. However, earlier in February, Finance Magnates reported that while the group’s total monthly volumes on all products rose by +6.4% MoM, individual equity futures saw the largest decline in that month as it went down by -46.1%.

The uncertainty following Russia’s invasion of Ukraine and the sanctions that followed led many traders to remain on the fence at the time.

Source: https://www.financemagnates.com/institutional-forex/euronexts-markets-sink-across-board-in-april/