Euronext FX Follows Industry Trend as Monthly Forex Demand Remains Flat

Euronext (EPA: ENX), the pan-European derivatives exchange, reported a marginal increase of 0.2 percent of spot  forex trading  volume in June that came in at more than $510 billion. However, the jump was almost 20 percent when compared year-over-year.

The average daily volume for last month stood at $23.18 billion compared to $19.35 billion in the same month of the previous year.

The forex trading venue ended the quarter, between April and June, with a total volume of almost $1.54 trillion, which is 27 percent higher than the second quarter of the previous year. The latest quarterly ADV stood at $23.64 billion.

Other institutional spot forex trading venues showed similar trends. Cboe FX, which operates in the US, reported flat trading demand month-over-month, while the yearly tally jumped by 19 percent.

An Institutional FX Platform

Euronext has pan-European operations with stock exchanges and derivatives markets in countries like France, the Netherlands and Belgium.

It expanded into the  forex market with the acquisition of FastMatch, which was founded as a joint venture by Credit Suisse and FX broker FXCM in 2017 and rebranding the platform as Euronext FX.

The spot forex venue offers services to institutions and operates an electronic communication network (ECN). It has matching engines in New York, London, Tokyo and Singapore.

In the derivatives markets offered by Euronext, there was a 4.8 percent month-over-month jump in the traded contracts in June. However, the demand slipped on a yearly basis by a marginal 0.3 percent, which was mostly because of the decline in equities derivatives market demand.

Meanwhile, Euronext is diversifying its offering as the exchange is going to list Europe’s first Bitcoin exchange-traded fund, Jacobi Bitcoin ETF. The crypto ETF received regulatory approval last October and is now scheduled to hit the exchange this month.