Euronext, a leading European trading venue operator, has published its financial results for the third quarter of 2021, revealing that its revenues and incomes were EUR 350.6 million, increasing by 71.2% during the period, with Borsa Italiana Group contributing EUR 121.1 million to revenue.
As a result of the consolidation of the Borsa Italiana capital markets, as well as increased cash equity volumes and high yield, trading revenues reached EUR 124.2 million. In addition, MTS cash trading activities grew at a double-digit pace, contributing to a 23.8 million EUR increase in fixed-income trading revenue. After consolidating Monte Titoli and CC&G, post-trade revenue increased to EUR 83.1 million, mainly reflecting normalized retail activity levels in the Nordic CSDs.
Custody and settlement revenue growth in the Nordic CSDs also increased more slowly than in previous quarters. That said, revenue from clearing rose to EUR 27.5 million. In addition, Euronext reported that CC&G generated a total of EUR 12.9 million from treasury income.
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The company’s operating income, excluding divestment and acquisition costs and which totaled EUR 54.8 million, grew to EUR 147.6 million thanks to the consolidation of acquisition-related costs and integration costs connected to the Borsa Italiana Group.
Q2 Results for 2021
As Finance Magnates reported in July about Euronext’s Q2 2021 results, revenue coming from spot forex trading went down to EUR 5.7 million, which is a decline of 13.5% from the previous year’s EUR 6.6 million. On an adjusted basis, this figure was down by 5.3%t year-over-year.
As a result of the weakening demand for forex trading, revenues were pushed down during the period, as the average trading volume dropped to $18.6 billion from $20.6 billion in Q2 of 2020. Also, the average daily volume (ADV) in the forex market across the operator was $18.53 billion during that period. This was another surge of 17.1% on a monthly basis compared to August’s number of $15.82 billion.
