By Nandini Sukumar
Nov. 7 (Bloomberg) -- London Stock Exchange Group Plc, Europe's oldest independent market, and NYSE Euronext, the world's largest owner of stock exchanges, reported record trading in October as unprecedented stock-price swings and the financial-market turmoil spurred volumes.
The total number of stock trades on LSE's electronic order book rose 55 percent to a record 29.6 million in October, the exchange said in a Regulatory News Service statement today. NYSE Euronext said in a separate statement that average daily trading on its European stock markets rose 62 percent to 2.1 million. The company's U.S. cash markets' average daily volume rose 79 percent to a record 4.8 billion.
Exchange stocks have tumbled on concern trading will slow as hedge funds and brokers pare back their use of borrowed money to buy and sell assets and as competition mounts for bourses. Still, as profits at securities firms decline, exchanges including London Stock Exchange, NYSE Euronext and Deutsche Boerse AG, are riding a wave of volatility that's boosting trading and profits.
Faced with new rivals, LSE, which also owns the Milan stock exchange, has cut prices and offered incentives to traders who add liquidity to its electronic order book.
A decline in the average value of the benchmark FTSE 100 and Italian indexes drove down the value traded on LSE's order books by 18 percent to 246.1 billion pounds ($387 billion), LSE said today.
NYSE Euronext said today that average daily trading on its Liffe European derivatives unit rose 37.1 percent in October to 4.4 million futures and options contracts.
Bclear, Liffe's trade administration and clearing business, processed 116 percent more contracts per day with 664,000 contracts in October, the exchange said. NYSE Euronext's U.S. options exchanges executed a combined average daily volume of 2.6 million contracts in October 2008.
To contact the reporter on this story: Nandini Sukumar in London at nsukumar@bloomberg.net.
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