The old exchange Euronext has been releasing monthly turnover statistics every month. This year the number of transactions in the equity market has seen a sharp rise compared with first quarter of 2014. Euronext reported a rise of 29% in traded value.

It’s a bull market, so the same number of shares traded represent a higher value. At the same time there’s more action in the market, the increased value of traded stocks is a result of both variables. Last month the average daily transaction value (ADV) was €9100 million. To be clear, that’s for all Euronext cash markets (Lisbon, Brussels, Paris and Amsterdam).

Option trading moved to TOM

In contrast, the number of derivative contracts traded at Euronext declined with 20% year-on-year. Some days Euronext struggled to keep their markets open, but of course the main reason for the decline is TOM. The index futures stayed at Euronext, but the rest of the pack moved to TOM.

And yes, today TOM reported a 55% rise in contracts traded compared with Q1 2014. It has become the greatest exchange for AEX index options, with a market share of 51% compared with Euronext. The Germans (Eurex) haven’t joined in for Dutch index options. Hence the market share in AEX options is a reliable number.

The overal market share of TOM in the option market isn’t very clear, as they don’t take into account the turnover in Dutch stock options on Eurex. Anyway, TOM claims a 45% percent market share in the first quarter, up from 31% last year.

Spirit of Westerterp alive at Euronext

I believe TOM is also offering the trading of index futures on their exchange. As far as I know, no future ever trades in there. All of the regular future trading stays at Euronext. But of course Euronext also has their share of deserted future markets.

The spirit of former director Tjerk Westerterp is still alive at Euronext.  Don’t spend anything on marketing, just introduce everything you can imagine and wait and see what sticks around. Failures consist of the Southern European Bank Futures. And of course the weekly futures on AEX and CAC. Futures on skim milk powder, sweet whey powder and unsalted lactic butter will start next week (never thought I would ever link to farmersjournal.ie). No buyers, no sellers – but Euronext has high expectations.

Jack