ICE troubled by volume drop for Financials

Average daily trading volumes in the financials product line at the Intercontinental Exchange group fell 21% in 2014, compared to the previous year, the company confirmed today.

By None

 

Average daily trading volumes in the financials product line at the Intercontinental Exchange group fell 21% in 2014, compared to the previous year, the company confirmed today.

The fall was attributed to a drop in trading activity in short-term interest rates, which fell by almost a third in 2014, compared to 2013.

The news comes a day after CME Group confirmed a 19% jump in the average daily volume in its interest rates product line, in its annual volume report.

In October, CME group executive chairman, Terry Duffy, said the company set an all-time daily record on the 15th of the month, with volume just shy of 40 million contracts.

This week, CME said it had also witnessed 6% growth in the annual daily volumes of agricultural commodities traded in 2014, compared to the previous year.

At ICE, commodities fared badly by comparison, with the average daily volume falling 10% in the year to the end of 2014, compared to a year earlier.

Growth in the average daily volume for Brent (3%) between 2013 and 2014 was insufficient to offset the decline in volumes for natural gas (-22%), gasoil (-17%) and power (-11%).

ICE said it was unable to comment on the volumes until its fourth quarter results and full year presentation, which is scheduled to take place on 5 February 2015.

Total revenues for the group’s credit default swap operation have grown, however, totalling USD$160 million for the whole of 2014, up from USD$145 million a year earlier.

In a statement to market, the company said that fourth quarter revenues from the group’s credit default swaps, transaction and clearing business were up in the fourth quarter of 2014.

Income totalled USD$39 million in the year, compared to USD$34 million a year before, including USD$25 million from CDS clearing.

 


 

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