Bolsas y Mercados Españoles (BME), the group that operates all Spain’s domestic stock exchanges, has reported a 39.5% fall in first-quarter net profit to €33.5 million on the back of reduced trading volumes. The company cited “severe uncertainty gripping markets” as the main contributor to the trading slump.
Revenues from the firm’s equities division declined 37.3% in Q1 to €28.7 million, and share volume traded slumped to 27.12 billion shares, a 17.6% decline compared with Q1 2008.
Quarter-by-quarter revenues were also down 38% for clearing and settlement services to €12.5 million and 11.8% for derivatives to €6.5 million, despite a 39.9% increase in volume in futures and options contracts.
“Trading volumes and financial flows through BME were significantly affected by a widespread correction in share prices and the severe uncertainty gripping markets, which damped investor activity and diminished access of capital markets as a source of financing,” read the BME’s result statement.
According to the exchange, controls over costs – which have increased 1.7% year-on-year, and a diversified business model helped it to curb the decline of revenues linked to trading volumes.