Euronext saw a drop of 11.7% year-over-year in revenue from forex trading during the first quarter of 2023, the pan-European stock exchange group disclosed on Tuesday in its latest financial performance report. The figure came in at €6.3 million during the period.

Furthermore, compared to the last quarter of 2022, the forex revenue decreased 6% from €6.7 million. The decline comes as Euronext FX, the group’s electronic communication network for forex trading, reported a decline of 13% in its spot FX volume. The total volume dropped to $1.4 trillion with the average daily volume falling 14.4% to $21 billion.

In addition to asset classes, Euronext reported significant decreases in most segments, contributing to a drop of 14.5% in its trading revenue which touched down at €128.9 million compared to the prior year period.

In detail, the exchange operator saw declines in its cash (23.7%) and derivatives trading (7.5%) revenues. On the contrary, fixed income and power trading revenues gained 7% and 8.4%, respectively.

Euronext Overall Revenue Shrinks in Q1

Overall, Euronext reported a consolidated revenue and income of €372.3 million during the first quarter of 2023. The figure is a drop of 5.9% from €395.7 million posted during Q1 2022.

Explaining the performance, Euronext said the consolidated revenue went down “mainly due to the strong comparison base for equity-related trading and FX rate variation effects.” It added that this decline was partially offset by the robust performance of its non-volume related activities and better performance of fixed income and power trading activities.

“Non-volume related revenue accounted for 58% of underlying Group revenue in Q1 2023, compared to 55% in Q1 2022, reflecting the successful diversification towards non-volume related activities and strong trading activity in Q1 2022 due to volatility spikes,” Euronext explained.

Speaking further about the performance, Stéphane Boujnah, Euronext’s CEO, noted that the firm saw strong organic growth from its data and technology activities. He added that the firm saw “record quarters” in its fixed-income and power trading businesses.

“We continued to operate in accordance with our cost discipline, in line with our 2023 cost guidance,” said Boujnah, who also doubles as the Chairman of Euronext’s Managing Board. “Overall, this translated into the second highest adjusted net income ever, at €147.1 million.”

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