Low trading volumes drive revenues down at Euronext

Euronext reports lower trading volumes in cash and derivatives markets have caused a drop in the exchange’s quarterly revenues.

Euronext has announced a 15% decrease in revenues in the third quarter this year, driven by low trading volumes in cash and derivatives markets.

Third quarter revenues totalled €123 million this year, compared to €133 million in the third quarter last year, which was the second best performing quarter at the exchange.

Euronext said sales were impacted by lower trading volumes, as average trading volumes decreased in cash markets by almost 35% compared to the third quarter in 2015.

Stéphane Boujnah, chairman and chief executive officer at Euronext, also explained the uncertainty following Brexit and lower market volatility were factors.

Euronext said in its earnings report: “Volumes improved in September, but the volatility on Euronext markets was reduced compared to other European markets.

“Revenue from listing decreased due to the fall in large-cap IPO and M&A driven listing operations.”

The exchange also reported it was able to cut its operation expenses by 7.8% in the third quarter and it expects to beat the 54.7% EBITDA margin in 2015 for the full year 2016. 

Earlier this month, Euronext reported an 18% decrease in the average daily transaction value traded on its cash order book in October.

The value dropped to €6.3 billion in October this year, down 18% compared to the same period last year, although volume traded was up 9.5% compared to the third quarter daily average.