IntercontinentalExchange’s Cash Equity Volumes Decline In August After An Impressive Year So Far

IntercontinentalExchange‘s cash equity trading volumes saw a major decline in volumes in August, after an impressive performance in 2016 so far.  This unexpected performance is attributable to the decline in the industry-wide cash equity daily trading volumes (-23% y-o-y) in the U.S., coupled with a slight fall in the exchange’s cash equity market share.

In addition, a 10% y-o-y decline in average rate per contract may cause a drop in cash equity revenues. Furthermore, a slowdown in the Chinese economy in 2015 had given a major boost to trading volumes in August, compared to which cash equities saw a slump in their volumes in the same month this year.

Owing to the increased competition from the newly formed Investors Exchange, we expect the market share to remain flat going forward. The table below breaks down these figures for the month:

See the full Trefis analysis for Intercontinental Exchange

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