Euronext Posts Drop in Q2 FX Trading, Overall Revenue Skyrockets

Euronext (EPA: ENX) has published its financial results for the second quarter of 2021, ending on June 30, reporting a solid jump in overall revenue and income but a yearly dip in Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term trading demand.

According to the official figures, revenue coming from spot Forex Trading Forex Trading Forex trading is the buying and selling of foreign currencies with the aim of generating a profit. The value of currencies, especially floating currencies, fluctuate to varying degrees. This constant volatility of exchange rates opens the door for speculators to invest in a certain currency against another. The Forex market is the world’s biggest and most liquid market, with over $5 billion turnover every single day, with the market being open 24 hours a day, 5 days a week.It goes without saying Forex trading is the buying and selling of foreign currencies with the aim of generating a profit. The value of currencies, especially floating currencies, fluctuate to varying degrees. This constant volatility of exchange rates opens the door for speculators to invest in a certain currency against another. The Forex market is the world’s biggest and most liquid market, with over $5 billion turnover every single day, with the market being open 24 hours a day, 5 days a week.It goes without saying Read this Term went down to €5.7 million, which is a decline of 13.5 percent from the previous year’s €6.6 million. On an adjusted basis, this figure was down by 5.3 percent year-over-year.

The revenue was pushed down by the sluggish demand for forex trading, as the average trading volume for the period dropped to $18.6 billion from Q2 of 2020 with $20.6 billion.

Impressive Overall Figures

Coming to the overall figures of the Group, the revenue for the quarter gained 56 percent to touch €328.8 million. Revenue from trading activities on various group exchanges contributed €112.8 million to the overall figures, which is a jump of 26.1 percent.

The jump in trading revenue was boosted by the consolidation of Borsa Italiana capital markets and robust yield after its incorporation into the group. In the two months, the Italian exchange contributed €89.6 million to revenue.

Revenue from post-trade services came in at €83.4 million, gaining 130.9 percent, while listing and data services brought in €48.2 million and €46.5 million, respectively. Additionally, non-volume-related revenue accounted for 56 percent of the quarter’s total business.

With a spike in overall business, Euronext generated a net income of €86.6 million, which is 5.6 percent higher on a year-over-year basis. EBITDA came in at €192.9 million with a 58.7 percent margin, adjusted at 59.2 percent.

“This growth results from robust organic performance with record listing activity in equities and ETFs, our fast-growing post-trade business in the Nordics and from the consolidation of the Borsa Italiana Group since 29 April 2021,” said Stéphane Boujnah, Chairman and CEO at Euronext. “We are actively preparing the announcement of the new Euronext strategic plan, including 2024 Group guidances, which we will release in November 2021.”