Euronext sees profits boom following ICE spin off

European exchange Euronext reported profits in 2015 have increased by 46%.

Euronext has reported a 46% increase in net profits in 2015, as cash trading and average daily volumes increased by over 20%.

The exchange recently released its annual results and reported a significant 46.1% increase in net profit in 2015, totalling €172.7 million.

Cash trading at Euronext reached €197.2 million in 2015 compared to €165.6 million in 2014. The exchange’s average daily volumes also increased by 27.8% with revenues totalling €8.3 billion in 2015 compared to €6.5 billion in 2014.

Euronext highlighted the ECB Monetary Policy and “successive rounds of market volatility during the year, resulting from uncertainties on some economies”, as reasons behind the increase in performance.

Its market share for 2015 reached over 63%, and Euronext said the balance between market share and yield “has been nurtured throughout the year, with carefully planned evolution of our liquidity schemes.”

Euronext’s ETFs average daily transaction values increased significantly by 74%, reaching €613 million.

The exchange saw a decrease in derivatives trading in 2015, however, as derivatives trading revenues declined 4.3% to €44.5 million.

Individual equity products suffered from lower volumes in 2015 and Euronext reported a 9.9% decrease, “in line with volatility and competition in The Netherlands.”

Revenues from clearing increased 7.2%, from €48.5 million in 2014 to €51.9 million in 2015. Euronext emphasised its “favourable product mix in our derivatives trading franchise.”

Market data and indices also performed well in 2015 with revenues reaching almost €100 million, a 6.9% increase compared to 2014.

January 2016 was also a record month for Euronext as the average daily number of cash market transactions reached over 2.2 million, a 12% increase from January 2015.

Stephane Boujnah, CEO and chairman at Euronext, commented on the performance: “Trading activity in 2016 has been resilient so far; Euronext is well positioned to benefit from volatility emerging from the current environment.”

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