Euronext Reports Over 30% Surge In FX Trading Revenue

Euronext, the European exchange operator, has reported a strong increase in its foreign exchange (Forex) trading business for the first quarter of this year. FX trading revenue rose by more than 30% to €9.2 million compared to the same period before.

The company said the rise in FX trading came amid unusual market volatility and was part of its overall strong financial results for the quarter.

Euronext Aims To Boost Growth Through Strong Market Performance

Stéphane Boujnah, Chairman and Chief Executive Officer of Euronext, said the company made record revenue and income of €458.5 million. He explained that this rise comes from new plans working well, growth in revenue not linked to trading volume, and big market moves in cash equity, fixed income, FX, power, and commodities. Boujnah said this strong start shows Euronext’s ability to stay ahead and lead toward a stronger and more competitive European market.

The FX business belongs to Euronext’s Fixed Income, Commodities, and Currencies (FICC) Markets division, which made €90.7 million in revenue — a rise of about 25% from before. The company also said that after this period, trading on Euronext FX’s spot market kept growing, with average daily trading volume reaching $38.2 billion, about 33% higher than before.

Thanks to strong FX trading, Euronext’s overall revenue and income grew by about 14%, reaching €458.5 million. The company said adjusted EBITDA rose by 17% to €294.1 million, and the profit margin rose by 1.6 points to 64.1%. Net income went up almost 18% to €164.8 million, and earnings per share increased by nearly 14% to €1.80.

Boujnah said Euronext made a very good performance in this period, and its wide business model lets it invest in growth and reach an adjusted EBITDA of €294.1 million.

The company also completed the purchase of Admincontrol, a software company that helps with governance, for NOK 4,650 million. It plans to join settlement for Amsterdam, Brussels, and Paris equity trades in the near future.

Euronext Wants To Lead In Global Listings And Commodities Trading

Euronext, short for European New Exchange Technology, works as a European stock exchange that offers trading and after-trade services for many financial products. These include stocks, foreign exchange, commodities, derivatives, ETFs, bonds, certificates, warrants, and indexes. The company runs close to 2,000 listed issuers and holds a total market value near €6.6 trillion.

Euronext acts as the largest place for listing debt and funds worldwide. It also provides technology and management services to other companies. Besides its main regulated market, it runs Euronext Growth and Euronext Access, which help small and medium companies list their shares. Euronext Paris makes up more than 80% of the company’s total market value.

The firm also plays an important role in commodities trading, offering markets for power through Nord Pool and for fish through Fish Pool, as well as other farm products like milling wheat and rapeseed.