U.S. and European Cash Trading Volumes Decline in July Versus Robust 2008 Levels;
U.S. Options up 28.9% and European Derivatives up 4.0%;
Year-to-Date U.S. Cash Trading Volumes Remain 11.9% Above Prior Year Period …
NYSE Euronext (NYX) today announced trading volumes for its global cash equities and derivatives exchanges for July 2009[1].
Trading volumes in July 2009 were mixed, with year-over-year growth in U.S. options and European derivatives and declines in U.S. and European cash trading volume driven by a seasonally slower July 2009, a decrease in volatility and unseasonally strong volumes in July 2008. Year-to-date U.S. cash volumes remain 11.9% above the prior year period.
Highlights
- NYSE, NYSE Arca and NYSE Amex (“NYSE Group”) U.S. cash products handled ADV in July 2009 decreased 24.3% and 12.2% compared to July 2008 and June 2009, respectively, but increased 11.9% year-to-date. U.S. cash products ADV in July 2008 was the 5th highest trading month in 2008. NYSE Group matched share of all U.S. equity trading volume in July 2009 was 28.3%, compared to matched market share of 22.1% for our next largest competitor.
NYSE Euronext is the largest exchange operator in the two fastest growing tapes in the U.S. equity markets. Year-to-date, total Tape A consolidated ADV and Tape B consolidated ADV increased a combined 44.2%, compared to the prior year period, while Tape C has increased only 1.0% during the same period. - NYSE Euronext European cash products ADV of 1.2 million transactions in July 2009 decreased 23.9% and 10.3% compared to July 2008 and June 2009, respectively. European cash products ADV in July 2008 was the 4th highest trading month in 2008. Year-to-date transactions of 1.4 million transactions was 9.3% below the same period last year.
- NYSE Euronext European derivatives products ADV in July 2009 was 3.6 million contracts, up 4.0% from July 2008, but down 22.8% from June 2009. The year-over-year increase was driven by a 111.5% increase in Bclear OTC volumes. Total interest rate products ADV was 1.6 million contracts, down 12.6% compared to July 2008 and total equity products ADV of 1.9 million contracts increased 23.6%.
- NYSE Euronext U.S. equity options ADV of 2.4 million contracts in July 2009 increased 28.9% compared to July 2008 levels, but decreased 11.5% from June 2009. The increase in ADV year-over-year was driven mostly by the addition of the former Amex options business.
Cash Trading
U.S. Cash
NYSE Group U.S. cash products handled ADV in July 2009 decreased 24.3% to 2.8 billion shares, compared to July 2008 and decreased 12.2% from June 2009. U.S. cash products ADV in July 2008 was the 5th highest trading month in 2008. Year-to-date, NYSE Group handled ADV of 3.7 billion shares was 11.9% above the same period last year. NYSE Group matched share of all U.S. equity volume in July 2009 was 28.3%, compared to 22.1% for our next largest competitor. Consolidated Tape A and Tape B trading volume in July accounted for approximately 75% of all Consolidated Tape trading in the U.S. market which includes trade reporting facility (“TRF”) volumes.
NYSE-listed (Tape A)
- Total Tape A consolidated ADV in July 2009 decreased 11.4% to 5.1 billion shares compared to 5.7 billion shares in July 2008 and decreased 3.9% compared to June 2009. Year-to-date, total Tape A consolidated ADV of 6.1 billion shares was 32.6% above the prior year period.
- Tape A matched ADV of NYSE Group in July 2009 decreased 25.2% to 1.9 billion shares compared to July 2008 and 11.8% compared to June 2009. Tape A matched ADV in June benefited from increased trading volumes related to the re-balancing of Russell Indexes and the expiration of stock index futures and options, single stock futures and stock options contracts. Year-to-date, NYSE Group matched ADV in Tape A increased 9.5% compared to the prior year period.
- NYSE Group’s Tape A matched market share in July 2009 was 36.6% down from 39.9% in June 2009, compared to market share of 16.9% for our next largest competitor. TRF market share across Tape A increased in July 2009 to 33.9% from 25.0% in December 2008.
- Designated Market Maker (“DMM”) participation in July 2009 was 8.7%, compared to 9.1% in June 2009. Supplemental Liquidity Provider (“SLP”) participation in July 2009 was 7.7%, up from 7.5% in June 2009. DMM and SLP participation pertain only to trading on NYSE.
NYSE Arca and NYSE Amex-listed (Tape B)
- Total Tape B consolidated ADV in July 2009 decreased 2.4% to 1.6 billion shares compared to July 2008 and decreased 22.2% compared to June 2009. The decline versus June 2009 was partly driven by reverse-splits for two actively traded Exchange Traded Funds. Year-to-date, total Tape B consolidated ADV of 2.2 billion shares was 89.9% above the prior year period.
- NYSE Group’s matched ADV of Tape B in July 2009 decreased 17.8% to 359 million shares compared to July 2008 and declined 25.1% compared to June 2009. Year-to-date, NYSE Group Tape B matched ADV was 61.3% above the prior year period.
- Tape B matched market share of NYSE Group in July 2009 was 23.1%, down from 23.9% in June 2009, compared to market share of 23.6% for our next largest competitor. TRF market share across Tape B increased in July 2009 to 34.5% from 21.5% in December 2008.
Nasdaq-listed (Tape C)
- Total Tape C consolidated ADV in July 2009 decreased 6.6% to 2.2 billion shares, compared to 2.4 billion shares in July 2008. Tape C consolidated volumes represented approximately 25% of all Consolidated Tape trading in the U.S. in July 2009. Year-to-date, total Tape C consolidated ADV was 1.0% above the prior year period.
- NYSE Group’s matched ADV of Tape C decreased 28.7% to 285 million shares in July 2009 compared to 399 million shares in July 2008 and decreased 6.9% compared to June 2009. Year-to-date, NYSE Group’s Tape C matched ADV decreased 13.5% to 328 million shares.
- NYSE Group’s Tape C matched market share increased to 12.9% from 12.4% in June 2009, compared to market share of 33.1% for our nearest competitor. TRF market share across Tape C increased in July 2009 to 38.7% from 29.9% in December 2008.
Exchange Traded Products
NYSE Group matched exchange-traded products ADV (included in volumes from Tape B and Tape C noted above) decreased 24.0% to 356 million shares in July 2009. Year-to-date, matched exchange-traded products ADV was 50.0% above the prior year period.
European Cash
NYSE Euronext European cash products ADV of 1.2 million transactions in July 2009 decreased 23.9%, compared to July 2008 and decreased 10.3% compared to June 2009. European cash products ADV in July 2008 was the 4th highest trading month in 2008. Year-to-date, European cash products ADV of 1.4 million transactions was 9.3% below the same period last year.
Derivatives Trading
European Derivatives
NYSE Euronext European derivatives products ADV in July 2009 was 3.6 million futures and options contracts, an increase of 4.0% from July 2008, but down 22.8% from the 4.6 million contracts recorded in June 2009. The 3.6 million in futures and options contracts ADV in July 2009 consisted of 2.5 million contracts executed through our full-service LIFFE CONNECT trading platform and a total of 1.1 million contracts executed through Bclear, NYSE Liffe’s trade administration and clearing service for OTC products. Year-to-date European derivatives products ADV of 4.2 million contracts was 2.7% below prior year levels.
- Total interest rate products ADV decreased 12.6% to 1.6 million contracts from 1.8 million contracts in July 2008 and decreased 34.3% from June 2009. Year-to-date, total interest rate products ADV decreased 17.0% compared to the prior year period.
- Total equity products (including Bclear) ADV increased 23.6% to 1.9 million contracts from July 2008 and decreased 10.1% compared to June 2009. Total equity products ADV in July executed through our full-service LIFFE CONNECT trading platform was 0.9 million contracts. Year-to-date total equity products ADV increased 16.1% above the prior year period.
U.S. Derivatives
NYSE Euronext’s U.S. equity options (NYSE Arca and NYSE Amex) ADV in July 2009 increased 28.9% to 2.4 million contracts compared to July 2008, but decreased 11.5% compared to June 2009. Total U.S. consolidated options ADV decreased 15.4% to 13.0 million contracts in July 2009, and decreased 3.4% from June 2009. Year-to-date, U.S. equity options volume of 2.4 million contracts was 39.4% above the prior year period. NYSE Euronext’s U.S. options exchanges accounted for 18.8% of the total consolidated equity options trading in July 2009, up from 12.3% in June 2008, but down from the 20.5% in June 2009. July 2009 market share benefited from new pricing implemented July 1 and helped offset a decline in market share driven by a drop-off in seasonally higher levels of institutional flow experienced in June 2009.
Source: ETFWorld.co.uk – Vanguard
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