Euronext spot FX trading generates €5.9M of revenue in Q4 2020
Euronext NV (EPA:ENX) today reported its financial results for the fourth quarter and full year of 2020.
Spot FX trading activity on the Euronext FX spot foreign exchange market recorded average daily volumes of $20.0 billion in Q4 2020, up 20.8%, compared to $16.5 billion in Q4 2019, resulting from a more volatile trading environment. As a result, spot FX trading generated €5.9 million of revenue in Q4 2020, up 2.7% compared to €5.8 million in Q4 2019. This is also slightly higher than the revenues of $5.8 million registered in the third quarter of 2020.
On a like-for-like basis at constant currencies, revenue from spot FX trading was up 10.6% in the final quarter of 2020.
Looking at the annual data, let’s note that spot FX trading activity on the Euronext FX spot foreign exchange market recorded average daily volumes of $21.4 billion in 2020, up 17.2%, compared to $18.3 billion in 2019, reflecting a more volatile environment and geographic expansion. As a result, spot FX trading generated €26.4 million of revenue in 2020, up 15.0% compared to €22.9 million in 2019.
On a like-for-like basis at constant currencies, annual revenue from spot FX trading in 2020 was up 16.8%.
Across all segments, in 2020, Euronext consolidated revenue increased to €884.3 million, up 30.2%, resulting primarily from the consolidation of VP Securities, Nord Pool and from strong organic performance of its trading, post-trade and listing activities.
On a like-for-like basis (excluding the consolidation of Nord Pool, Ticker, 3Sens and VP Securities for the year, OPCVM360 in the first, second and third quarter and Oslo Børs VPS in the first and second quarter) and at constant currencies, Euronext consolidated revenue was up 13.6% in 2020, at €760.2 million.
Non-volume related revenue accounted for 50% of total Group revenue in 2020, stable compared to 2019. This reflects the expanded post-trade activities with the consolidation of VP Securities in 2020 and the first full year of consolidation of Oslo Børs VPS partially offset by higher trading revenue. The operating cost coverage ratio was at 121% in 2020, compared to 122% in 2019.
Let’s note that Euronext booked €17.3 million of exceptional costs in 2020, primarily in relation with the contemplated acquisition of the Borsa Italiana Group and restructuring costs. The transaction is still subject to regulatory approvals in several jurisdictions, a declaration of non-objection from Euronext’s College of Regulators, and approval of Euronext as a suitable purchaser by the European Commission.
Euronext expects to complete the deal in the first half of 2021.