October FX volumes at IntercontinentalExchange decrease by 12.2% MoM


North American multinational network of exchanges and clearing houses Intercontinental Exchange, Inc. (NYSE: ICE) has today reported monthly exchange traded volumes across all asset classes for the month of October 2014.

Congruent with the industry direction, upward trends in volume figures were made across all asset classes at ICE, whilst futures and options average daily volume (ADV) was flat and cash equities ADV increased 32% over the prior October.

When reviewing the average daily volumes (ADV) for FX and on a monthly basis, however, a different story is apparent, with ICE having experienced a decrease from September’s average daily FX volumes. On this basis, average daily volumes during October stood at 44,000 contracts compared to 50,000 in September, however this figure is still not of great concern as September’s volumes were double those achieved in August, as well as being 117% higher than October last year, the month which began the period of low volatility across many FX firms which lasted for almost a year.

Interestingly, a similar pattern emerged at compatriot and rival marketplace CME, whose October FX volumes also fell short of those achieved in September this year.

The disparity here is that whilst September heralded a vast upsurge in currency market volatility which spurred on a series of large volumes for many FX firms and executing venues, October outstripped September’s already stellar results in many cases, as is apparent in the figures from companies that have so far reported October’s volumes. In the case of ICE, no such increment was made over September’s results when considering the average daily number of FX contracts traded.

With ICE’s third quarter 2014 financial results having been announced yesterday which showed a 9.2% decrease in quarterly earnings for the firm’s combined operations, it appears that reliance on a strong November in order to uphold the progress made in September will be necessary to maintain a positive direction.

As far as other asset classes are concerned, ICE has reviewed theses on a year-on-year basis, with commodity ADV increased 1% year to year, energy ADV up 2% driven by increases in Brent and Other Oil ADV, up 28% and 20%, respectively, from the prior year period.

Financials ADV declined 2% from the year period due to continued low volatility in Continental European short-term rates impacting the Euribor ADV, and was partially offset by growth in Sterling and Equity Indices ADV, which were up 62% and 50%, respectively, over the prior October. NYSE’s U.S. cash equities and U.S. equity options ADV increased 32% and 10%, respectively, over the prior October, and U.S. cash equities market share was 23.9% and U.S. options market share was 22.8% for the month.

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October FX volumes at IntercontinentalExchange decrease by 12.2% MoM

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