Euronext currency trading revenue drops 12% in first quarter

Euronext recorded an 11.7% year-on-year decline in revenue from currency trading during the first quarter of 2023, the pan-European exchange group said in its latest financial performance report on Tuesday. The figure amounts to 6.3 million euros over the period.

In addition, compared to the last quarter of 2022, foreign exchange revenues also decreased by 6% compared to 6.7 million euros. The drop comes as Euronext FX, the group’s electronic communication network for forex trading, announced a 13% drop in its spot foreign exchange volume. Total volume fell to $1.4 trillion, with average daily volume down 14.4% to $21 billion.

In addition, asset classes, Euronext recorded significant declines across most segments, contributing to a 14.5% decline in trading revenue which hit €128.9 million compared to the same period of the previous year.

In detail, the stock market operator saw its income from treasury (23.7%) and derivatives trading (7.5%) decrease. On the contrary, revenues from fixed income securities and power exchanges increased by 7% and 8.4%, respectively.

Overall,
Euronext reported consolidated revenue and profit of €372.3 million in the first quarter of 2023. This figure represents a decrease of 5.9% compared to the €395.7 million recorded in the first quarter of 2022.

Explaining the performance, Euronext said consolidated revenue declined “mainly due to the strong basis of comparison for equity-related trading and the effects of changing exchange rates”. It added that this decline was partially offset by strong performance in its non-volume businesses and better performance in fixed income and power trading businesses.

“Non-volume revenue represented 58% of underlying Group revenue in the first quarter of 2023, compared to 55% in the first quarter of 2022, reflecting the successful diversification into non-volume businesses and strong sales activity. trading in the first quarter of 2022 due to spikes in volatility,” Euronext explained.

Speaking further on the performance, Stephane Boujnah, CEO of Euronext, noted that the company has seen strong organic growth in its data and technology businesses. He added that the company had “record quarters” in its fixed income and power trading businesses.

“We have continued to operate in line with our cost discipline, in line with our 2023 cost guidance,” said Boujnah, who is also chairman of Euronext’s board. “Overall, this translated into the second highest adjusted net income ever, at 147.1 million euros.”

Futu exits app stores in China; Beeks’ new contract; read the news nuggets of the day.

Euronext recorded an 11.7% year-on-year decline in revenue from currency trading during the first quarter of 2023, the pan-European exchange group said in its latest financial performance report on Tuesday. The figure amounts to 6.3 million euros over the period.

In addition, compared to the last quarter of 2022, foreign exchange revenues also decreased by 6% compared to 6.7 million euros. The drop comes as Euronext FX, the group’s electronic communication network for forex trading, announced a 13% drop in its spot foreign exchange volume. Total volume fell to $1.4 trillion, with average daily volume down 14.4% to $21 billion.

In addition, asset classes, Euronext recorded significant declines across most segments, contributing to a 14.5% decline in trading revenue which hit €128.9 million compared to the same period of the previous year.

In detail, the stock market operator saw its income from treasury (23.7%) and derivatives trading (7.5%) decrease. On the contrary, revenues from fixed income securities and power exchanges increased by 7% and 8.4%, respectively.

Overall,
Euronext reported consolidated revenue and profit of €372.3 million in the first quarter of 2023. This figure represents a decrease of 5.9% compared to the €395.7 million recorded in the first quarter of 2022.

Explaining the performance, Euronext said consolidated revenue was down “mainly due to the strong basis of comparison for equity-related trading and the effects of changing exchange rates”. It added that this decline was partially offset by strong performance in its non-volume businesses and better performance in fixed income and power trading businesses.

“Non-volume revenue represented 58% of underlying Group revenue in the first quarter of 2023, compared to 55% in the first quarter of 2022, reflecting the successful diversification into non-volume businesses and strong sales activity. trading in the first quarter of 2022 due to spikes in volatility,” Euronext explained.

Speaking further on the performance, Stephane Boujnah, CEO of Euronext, noted that the company has seen strong organic growth in its data and technology businesses. He added that the company had “record quarters” in its fixed income and power trading businesses.

“We continued to operate in line with our cost discipline, in line with our 2023 cost guidance,” said Boujnah, who is also chairman of Euronext’s management board. “Overall, this translated into the second highest adjusted net income ever, at 147.1 million euros.”

Futu exits app stores in China; Beeks’ new contract; read the news nuggets of the day.