NYSE Sees August Rise In Equities Trade But Market Share Falls
05 September 2009 - 3:06AM
Dow Jones News
A rise in cash equities and derivatives trade on both sides of
the Atlantic last month helped NYSE Euronext (NYX) avoid the usual
volume slowdown associated with August.
Stock trading came in 28% higher than year-ago levels on NYSE
Euronext's U.S. markets and 5% higher on its European platforms due
to heavy activity in cheaply priced financial stocks.
But the transatlantic exchange operator still lost market share
in both regions as smaller rivals drew a greater percentage of
electronic trading volume.
NYSE Euronext shares were up 6 cents in midday trade Friday at
$27.38.
August is known as a seasonally slower month for markets as much
of Wall Street and Europe goes on vacation.
This year was different, as beaten-down financial stocks -
particularly Citigroup Inc. (C) - provided intraday hedging
opportunities for traders investing in other highly volatile names
like Fannie Mae (FNM) and Freddie Mac (FRE).
In the last two weeks of August, Citi shares often accounted for
almost one-fifth of NYSE Composite volume.
However, NYSE Euronext's share of U.S. cash equities trade fell
to 27% from 28.3% in July, alongside its chief competitor Nasdaq
OMX Group Inc. (NDAQ), slipping to an estimated 22.1% for
August.
Electronic platform Direct Edge was seen as the chief
beneficiary of the Citi-driven trade, claiming a record 12.9% of
U.S. stock trades last month.
Options trading on NYSE Euronext's two U.S. exchanges remained
sharply higher than year-ago levels but slipped from July as
competing markets took more business.
With 2.3 million contracts traded last month, NYSE Euronext
claimed 18.2% of the U.S. options business, up from 12% in August
2008.
Trading volume on Liffe, NYSE Euronext's U.K. derivatives
exchange, was slightly lower than the prior month but 16% higher
than year-ago levels, helped by a 12% year-on-year rise in Sterling
futures activity.
Chicago-based CME Group Inc. (CME) August derivatives trading
was 7% lower than the year-ago period, although it picked up from
the previous month.
Eurex, the derivatives exchange co-owned by Deutsche Boerse
(DB1.XE) and SIX Swiss Exchange, saw volume 9.5% lower both month
on month and year on year.
Liffe equity index products, including futures on the FTSE 100
and AEX indexes, were up nearly 22% higher than the previous
August, but down 17.7% from July.
-By Jacob Bunge, Dow Jones Newswires; 312-750-4117;
jacob.bunge@dowjones.com