Market data props up Euronext’s profits

Market data bolstered overall revenues, as Euronext reported declines across trading businesses.

Euronext reported revenues were up 2% in the second quarter this year, largely driven its market data and indices business unit.

Quarterly revenues increased by €2.2 million, despite declines across the venue’s derivatives, cash trading, and post-trade services.

Derivatives trading suffered the biggest drop in sales, with revenues reaching €10.2 million in the second quarter this year, compared to €11 million in the same period in 2015.

Euronext said product launches in 2015 bolstered revenues in the business unit, and offset the decreases in its transaction based businesses.

Market data and indices surged 12% in the second quarter this year, compared to the same period last year, with revenues totalling €27.3 million.

At the beginning of this year, Euronext’s SLE programme – an ETF connectivity tool – which bolstered the venue’s market solutions revenues by almost 3% in the second quarter this year.

Chief executive officer, Stéphane Boujnah, said the firm is delivering on its growth plan by cutting costs and focusing on ‘selected initiatives’.

Operational expenses were down 9% overall through “strict execution of the cost reduction plan,” Euronext said.

Boujnah said that despite the EU referendum and market uncertainty, Euronext managed to deliver the most profitable quarter since its initial public offering.

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