Euronext’s July Volumes Reiterated Downward Trend as Brexit Abates

Euronext, Europe’s largest exchange, has released its latest trading volumes for the month ending July 2016, which saw its figures retreat back to pre-Brexit levels, just one month after breaking out of a tight consolidation that had gripped the exchange during H1 2016, per a Euronext statement.

– July, not so much. Trading volatility had spiked unusually higher back in June helped by the Brexit referendum and subsequent fallout. Lacking any such impetus in July, coupled with seasonal slowdowns, Euronext saw its volumes once again on the decline.

In particular, Euronext’s average daily cash orders fell to $6,938 million (€6,193 million), justifying a drop of -25.8% MoM from $9,349 million (€8,345 million) in June 2016. The latest order book figures in July at Euronext also resumed a multi-month downtrend that was on par with most other institutional exchanges. Euronext’s July 2016 volumes were equally lower over a YoY basis, with its latest statistics representing a loss of -21.7% YoY from July 2015.

Near Universal Decline

The weakness during July was also extended to exchange-traded-funds (ETFs), having released a volume of $535.5 million (€478.0 million) from $765.2 million (€683.0 million) just one month prior, or -30.0% MoM. Compared to 2015 however, July 2016’s figures were also lower by -6.9% YoY, adding eleven new listings.

By extension, Euronext’s equity index derivatives saw its rally snapped during July 2016, supporting a figure of 178,900 contracts for the month – this was reflective of a loss of -26.9% MoM from 244,761 contracts in June 2016. Moreover, ADV of individual equity derivatives fell as well to 200,324 in July 2016 vs. just 251,919 contracts in the month prior or -20.5% MoM from June 2016.

Finally, with the recent run up in precious metals prices, Euronext’s commodities volumes for July 2016 were much higher, its lone positive for the month. The exchange’s ADV across commodities derivatives came in at 66,535 contracts for July 2016, good for a rise of 18.4% MoM from just 56,195 contracts in June 2016.