Euronext stands as a pan-European exchange, recently reporting a drop of 8% when it comes to its average daily volume (ADV) regarding its spot forex market. For December of 2020, the ADV stood at $19.8 billion in total, with November of 2020 sporting an ADV of $21.5 billion.
Large Yearly Increase
When viewed year-over-year, however, things really start to shine. The ADV for December of 2019 was recorded at $16.0 billion, meaning that the firm had seen a yearly increase of 24% in ADV year-over-year.
Total monthly volumes show a similar trend, at least on a month-over-month basis. Euronext’s trade volumes are down from November’s $452 billion, recording a 3.4% loss with December 2020’s $437 billion in trade volumes. However, where the increase really shines is year-over-year.
COVID-Induced Volumes Compared To 2019’s
Simply put, the chaos that was the COVID-19 pandemic has caused volumes to skyrocket across the world to all new record levels. A frenzied flurry of buying and selling among this time of incredible volatility means that Euronext’s $437 billion stands as 2085% more than December of 2020’s $20 billion in volumes.
It seems that the rampant trading has yet to stop, as parties across the world hold fears that the new COVID-19 vaccines, seemingly rushed as they were, won’t halt the progress of the virus. As such, investors fear another heavy hit to the economy.
No Rest For Financial institutions
In other news, Euronext had officially discontinued its FX Tape streaming service. This service allowed for a central reference point for various FX spot transaction prices, and was scrapped just last month.
The service itself launched three years ago, going by the name of FastMatch before renaming itself to Euronext FX Tape. It modeled itself to various other projects aimed at other asset classes, such as equities. The FX Tape consisted of various financial institutions within the FX market, such as banks and ECNs, that provide the last-sale data feed to the streaming service, size, price, and timestamp included. In essence, the idea is sound, as a decentralized, international price ticker for the FX space would prohibit any singular authority from sitting above and dictating the perceived prices.
Euronext itself boasts bourses operating within Amsterdam, Paris, London, Brussels, Dublin, and Lisbon. Much like many other similar events in other Groups, Euronext suffered an array of technical glitches back in October. As a result, transactions were frozen over several of the bourses for an excess of three hours, happening during peak trading activity hours.