Intercontinental Exchange (ICE) reported significantly lower Euribor trading volumes in the first quarter of 2014, blaming low interest rates and volatility.
Euribor contracts traded on Liffe, which it acquired as part of last year’s takeover of NYSE Euronext, saw average daily volume (ADV) drop 49% year-on-year, though other interest rate products performed well.
The exchange group saw record ADV in Sterling interest rate derivatives, which increased 37% over the past year and significant growth in its Swapnote product, which was up 32% year-on-year.
ICE said macro economic conditions were largely to blame, with continued low interest rates in the eurozone hitting Euribor, while a recover in the UK economy led to increased interest in Sterling products, with Sterling futures performing particularly well, up 71% year-on-year to and ADV of 202,000 contracts.
Liffe has recently faced additional competition from Nasdaq OMX NLX, a London-based derivatives exchange launched in May last year. NLX told theTRADEnews.com its 30-day moving average share of the Euribor contracts market has now reached 12% and continues to grow.
In the US, ICE saw strong performance across its credit derivatives business, with credit default swap revenue up 30% to US$43 million.
Among its US futures and options, results were mixed, with Brent products down 15% year-on-year while metals increased 25%. Total futures and options ADV was down 13% to 6.6 million contracts.
ICE also confirmed it has completed integration of the NYSE Euronext businesses that it intends to keep and is on track to divest Euronext in the summer of this year.
Euronext saw a 16% increase in trading of cash products in Q1 2014 compared to the same period last year. However, derivatives volumes were down 6%.