Euronext posts strong Q3 trading performance, offsetting lower cash trading revenue

Euronext has appointed Simon Gallagher head of global sales for Euronext and chief executive of Euronext London, having formerly led the cash and derivatives team.

Euronext posted solid double-digit growth in fixed income and power trading, with the former up 18.7% year-on-year, which more than offset its lower performance in cash trading which saw its revenue fall 4.4% since this time last year.

The derivatives trading revenue decreased by 3.9% driven by a decline in equity and index futures compared to the particularly volatile environment seen in Q3 2022, while FX trading was down 11.4%.

As well as the low volatility environment for cash and derivatives trading, the business also highlighted the negative FX rate variation impacts. 

Overall, its trading revenue was up 0.4% year on year, with the strong organic growth in fixed income trading was also seen in power trading which saw a 10% year on year improvement.

Euronext’s solid Q3 results saw its underlying consolidated revenue and income up 2.8% from 2022, which according to the business was aside from solid trading performances was also driven “by the robust performance of non-volume-related activities”.

Total revenue and income increased 19.5% with non-volume related revenue accounting for 60% of the business’ revenue in this quarter, compared to 53% in Q3 2022, “reflecting the successful diversification towards non-volume related activities and low volatility environment for cash trading,” said the business.

Read more: Derivatives and FX trading revenue decline offsets otherwise solid Q2 for Euronext

The business also announced today that Simon Gallagher has been appointed head of global sales for Euronext and chief executive of Euronext London, having formerly led the cash and derivatives team.

Elsewhere in the business, its technology solutions segment reported a 5.5% increase, put down to the internalisation of its colocation services (the Core Data Centre was previously migrated to Bergamo) and good performance by Nord Pool technology activities.

Euronext also posted increases in revenue across its custody and settlement, and clearing, segments – up 3.1% and 1.6% respectively. 

Stéphane Boujnah, chief executive and chair of the managing board of Euronext, highlighted the business’ strengthened leadership in cash trading in a low volatility environment for equities trading, as well as its diversification strategy, as key contributors to the successful quarter. He also added that “Euronext strengthened its position as the leading venue for equity listing and trading in Europe. We welcomed 72% of the new equity listings in Europe this quarter. 

“In a softer environment in equity trading, we remained the go-to trading venue in Europe, providing best-in-class liquidity, with a market share averaging 66.5% over the quarter and an increased revenue capture. Our leadership in cash trading has been achieved thanks to the excellent work of our cash team led by Simon Gallagher.”