TMX Group’s Volumes a Mixed Bag in January as Volatility Normalizes

TMX Group Limited, operator of the Toronto Stock Exchange Stock Exchange A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the fin A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the fin Read this Term and a total of four marketplaces including TSX Venture Exchange, TMX Select, Alpha, Montreal Exchange (MX) and NGX, has just reported the aggregated trading metrics for January 2017. The latest metrics were largely mixed, following an influence of Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or 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. Trad In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or 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. Trad Read this Term south of the border.

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TMX Group and its subsidiaries operate both cash and derivative markets and clearinghouses across multiple asset classes, including equities, fixed income and energy, among others.

One of the largest influences in its volumes on a month-over-month basis has been a normalization of volatility across its markets, particularly in the aftermath of a seasonal slowdown. Additionally, south of its border, Donald Trump’s administration is now a reality, triggering a number of moves as markets digested his unorthodox approach.

During the month of January 2017, TMX and all of its marketplaces reported an average daily volume (ADV) ‎of 603.3 million contracts, which represented a marginal decrease of -1.4 percent month-over-month from 612.0 million back in December 2016. Moreover, the latest figures constituted a growth of 16.1 percent year-over-year from 519.7 million contracts back in January 2016.

In total terms during January 2017, TMX and all of its marketplaces saw equities volumes of 12.7 billion, rising by a margin of 4.1 percent month-over-month from 12.2 billion in December 2016. Looking at a yearly timetable however, the performance in overall equities volume was also firmly entrenched in positive territory, climbing 22.1 percent year-over-year from 10.4 billion in January 2016.

Across all three exchanges, the total cash value in January 2017 came in at $129.4 billion, a decline of -3.4 percent month-over-month from $134.5 billion in December 2016. The latest cash value in January 2017 across the exchanges also moved higher when measured against its 2016 counterpart, ascending 7.5 percent year-over-year from $125.1 billion in January 2016.