Euronext has reported down trading revenues for 2023 thanks to the softer environment for cash trading and a drop off in derivatives trading.
Overall trading revenue fell by 4.7% in comparison with 2022, coming in at €490 million. Cash trading revenues were down 12% to roughly €265 million for 2023, while derivatives trading revenues were down 7% to roughly €54 million.
Stephane Boujnah
However, the declines were offset by record results in fixed income trading which was up 15.6% in comparison with 2022 at €107 million and power trading which was up 14.5% to €37 million.
The result contributed to the exchange operator’s overall growth in 2023, seeing full year revenue and income up 4% to €1.47 billion.
“In 2023, Euronext reached record revenue and income close to €1.5 billion,” said Euronext chief executive Stephane Boujnah in a statement.
“Robust organic growth in our non-volume related businesses and double-digit growth in fixed income and power trading drove group revenue’s growth to 3.9%, despite negative FX impacts and the softer cash trading environment.”
Euronext announced plans for a new dark trading facility last year and in Thursday’s results the exchange operator confirmed that following the successful opening of the testing environment at the end of January this year, its dark, mid-point and sweep functionalities will go live in Q1.
Clearing revenue was stable year-on-year at just over €121million which the exchange attributed to additional business captured by the Euronext Clearing migration.
“The migration of Borsa Italiana’s derivatives to Optiq in Q1 2024 and the expansion of Euronext Clearing to Euronext listed derivatives by Q3 2024 will complete our presence on the entire trading value chain and will position Euronext ideally to capture future growth opportunities,” said Boujnah.