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 Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term 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 minus fixed income sank -42% from €391 million to €226 million between March and April 2022. However, when compared to April 2021, there is 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 buy 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), the 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 is 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 and April, falling from 4.9 million to 3.6 million.

The Derivatives Market

Euronext’s derivatives market declined by -26.6% to 14 million in volume (in lots) from 19.5 million in volume, recorded in March. On a YoY basis, 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 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 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.

Euronext's monthly volume data does not provide context as to the cause of these declines. However, Finance Magnates reported that while the group's total monthly volumes on all products rose by +6.4% MoM in February, individual equity futures saw the largest decline in that month as they 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.