I will now hand you over to your host, Stephane Bouchin, CEO and Chairman of the Managing Board to begin today's conference. Thank you.
Good morning, everybody, and thank you for joining us this morning for Euronext Q3 2020 results conference call and webcast. I am Stephane Boussner, CEO and Chairman of the Managing Board of Euronext. And I will start with the highlights of this Q3. Georgio Modica, the Euronext CFO, will then develop further the main business and financial highlights. And we will open up for questions together with Antonia Atsia, a member of the Managing Board of Euronext.
So let's start on Slide 4. As you've seen Euronext reported solid results for the Q3 of 2020. This reflects the continued benefits of our diversification initiatives as well as the resilience of our core business. As you've seen, the revenue increased in Q3 2020 by EUR 23,100,000 up plus 12.7 percent to EUR 204,800,000 compared to Q3 2019. This robust performance reflects solid revenue growth resulting from both continued diversification and a resilient core business.
So excluding acquisitions and at constant currencies rate, revenue grew by +3.4 percent in Q3 versus last year. Non volume related revenue accounted for 54% of group revenue this quarter and covered 128% of operating expenses, excluding depreciation and amortization. So thanks to our continued cost discipline, group EBITDA also grew by plus 9.1% in Q3 2020 to EUR 117,800,000 and this translated into an EBITDA margin of 57.5%. It is 1.9 points lower than last year's 3rd quarter, as we are in the process of consolidating costs from our recent acquisitions, whose integrations are still ongoing. But on a like for like basis and excluding recent acquisitions such as VP Securities in Copenhagen, EBITDA margin reached 59.7%, slightly higher than last year.
In this context, we confirm the cost guidance announced in February for 2020, as we expect the strategic costs and Oslo VPS integration costs to ramp up in the Q4. Overall, this good performance over the quarter resulted in a +13.8 percent increase in adjusted EPS and €1.12 per share. On a reported basis, Q3 2020 net income was up plus 10.6 percent at €70,200,000 So moving to Slide 5, I would like to come back quickly on the Boxa Italiana acquisition. On 9 October, we announced a turning point in our history with the contemplated acquisition of the Borca Italiana Group. The combined group, when the deal is completing, will have a well diversified business mix, covering the full exchange value chain.
The combined group will become the leading pan European venue for listing with €4,400,000,000,000 market capitalization on its markets. It will be the number one venue for secondary markets with €11,700,000,000 of average daily volume. The combined group will offer a full postpaid value chain with the addition of a multi clearing house multi assets clearing house, sorry. And it will become the 3rd CSD in Europe, and we will more than double the volumes of assets under custody within the Euronix book. From a financial perspective, the proposed combination will provide compelling value propositions for our shareholders.
The combined group would cross the €1,000,000,000 revenue mark and will provide healthy EBITDA margin profile, I mean, even prior to any synergies. And it is clearly very important to note that Boxa Italiana has higher revenue and EBITDA performance than what was rumored in the press before the transaction was announced. In addition, the combination is expected to deliver EUR 60,000,000 of run rate synergies by the 3rd year after completion through a combination of EUR 45,000,000 of expected cost synergies and EUR 15,000,000 of expected revenue synergies. And the combination of Euronext and the Wartsitania Group is expected to result in an immediate accretion on adjusted EPS before new synergies and a double digit EPS accretion on EPS core synergies in year 3. To conclude on this slide with some words on financing and timing, I just wanted to remind everyone that Euronext is to acquire 100% of the London Stock Exchange Group Holdings Italia SPAs, which is the holding company of the Bolsa Italiana Group, for a cash consideration of EUR 4,325,000,000.
The financing is fully secured through bridge loan facilities, fully underwriting underwritten by a group of banks, and we expect to complete the acquisition by the first half of twenty twenty one, subject to various conditions precedent that are in the process of being met. The first one is the approval by the Eurex extraordinary general meeting, which will convene on the 20th November to review the transaction. The other one is the clearance by the European Commission for the London Stock Exchange proposed merger with Refinitiv. I'm sure you all saw that on the 3rd November, London Stock Exchange Group shareholders approved the sale of Borce Italiana, which was also one of the conditions to transaction. So I now hand over to Giorgio Monica for the detailed presentations of our Q3 results.
Thank you, Stefan, and good morning, everyone. Let's start with Slide 7. First of all, I would like to start saying that like for like in organic performance exclude the impact of the consolidation of BP Securities, Norpool, OPC VM 360, ticker $0.03 and exclude exchanges of foreign exchange rate. As Stefan mentioned, Euronext reported a solid quarter with revenues reaching EUR 204,800,000, up EUR 23,100,000 or 12.7 percent. External growth contributed EUR 19,200,000 to this performance.
Let's take a closer look at the different businesses. Post trade revenue increased 44.9 percent to €44,600,000 driven by the first impact of the consolidation of EP Securities contributing for EUR 10,000,000. The strong organic performance and higher clearing revenues. Trading revenue was up 7.3% to €75,900,000 with €6,300,000 contributed by North Pool Power Trading. This contribution offset slightly lower cash and derivative trading revenues.
Listing revenue grew 2.9% to €35,800,000 thanks to the strong performance of corporate services at €7,800,000 revenues. Advanced Data Services saw a 3% increase to €34,500,000 reflecting a solid performance of the market data in Indices Business and the contribution of Northpool Data Businesses. In the Q3 of 2020, non volume related revenue accounted for 54% of total group revenue, increasing from 52% in the same quarter last year. This change reflects the expanded post trade activity with the Whitby Securities. Lastly, these non volume related revenue cover 128% of our operating cost excluding D and A, almost identical to 129% last year.
Moving to listing Slide 8. Corporate Services remained this quarter the growth engine of listing. Listing revenue grew 2.9% to €35,800,000 with our corporate service franchise reporting €7,800,000 of revenues, up 29.5 percent due to the continued demand for digital solution in the current market. On primary market, Euronext reported a record quarter in terms of new listing with 21 SME new listing that demonstrate the attractiveness of our value proposition and the success of the listing initiative launched in the last year. Also contributed Oslo contributed for 13 new listings in the Q3 of 2020, one of the busiest quarter of its history and beat a 13 year record.
Five new listings were from company domesticated outside of the Euronext market, most of them in Spain. And our tax share program contributed for 2 new listings. Overall, EUR 917,000,000 were raised on the Euronext primary market compared to EUR 221,000,000 last year. Secondary markets saw the usual seasonal slowdown in activity combined with the larger proportion of convertible bond financing. In the Q3 of 2020, EUR 8.5 1,000,000,000 were raised in secondary equity issues compared to EUR 6,100,000,000 in the Q3 of 2019.
Moving now to our trading business, let's start with cash trading on Slide 9. Cash trading revenue decreased 0.6% to a total of EUR 53,000,000 reflecting lower trading volumes offset by improved average revenue capture and market share. Like for like revenue decreased 0.2%. Looking now at the different components of this performance. ADV decreased 5.8 percent to EUR 7,500,000,000.
The average fees over the 3rd quarter increased to 0.54 basis points compared to 0.51 basis points in the Q3 of 2019. This is a 5.2% increase that almost perfectly offsets the impact of subdue volumes. On average, market share on cash trading reached 70% over the quarter compared to 69.4% in the Q3 of 2019. Moving on to derivative trading. Derivative revenue were $10,800,000 down 6.3% compared to the Q3 of 2019, reflecting lower trading volumes also impacted by the uncertainty over the dividend season.
Let's take a closer look at the different drivers. Revenues decreased more than volumes as the average fees slightly decreased compared to last year. Average revenue per lot was €0.30 down 1.3%. This reflects, as I highlighted in the Q2, the significant increased proportion of lower yield equity future in our product mix. This was partially offset by stronger volumes in commodity derivative that as you know have higher than average fees.
Excluding the impact of these new equity futures namely single stock and dividend future products, the average revenue would have been $0.53 per lot. Moving to the next part of our trading business and Slide 10. SpotFX recorded average daily volume of $19,300,000,000 almost stable to the Q3 of 2019. SpotFX trading revenue was down 2.4 percent to EUR 5,800,000, negatively impacted by the euro dollar evolution. At current currencies, spot FX trading revenue was up 2.6%.
Powertrading, encompassing the trading activity of North Pool, of which Euronext acquired 66% in January 2020, reported EUR 6,300,000 revenues. This reflects the lower volumes due to the seasonal slowdown of spring and summer months as mentioned in the Q2. In the Q3 of 2020, average daily volume for the day ahead were 2.19 terawatt hour, while the average daily volume for the intraday were 0.07 terawatt hour. As a reminder, other North Pool activities, namely market coupling, shipping and market data are recorded in market data and technology solutions. Moving to Slide 11 for post trade.
Revenue from our post trade activity increased 44 point 9% in the Q3 2020 to EUR 44,600,000. Clearing revenue was up 11.7% to EUR 14,900,000 reflecting higher treasury income and revenue capture offsetting lower derivatives trading volumes. Custody and settlement revenue accounted for EUR 29,800,000, up 70.3 percent, resulting primarily from the first impact of the consolidation of EP Security as mentioned. In addition, the business benefit from high settlement activity and the increased retail participation in Norwegian CSD. Moving to Slide 12, starting with the Advanced Data Services.
Revenue was up 3% to 34,500,000 in the Q3 of 2020. This growth was driven by the consolidation of acquired businesses contributing EUR 500,000 and a resilient core business with continuous traction from ESG Products and Market Data Business. Investor Services revenue grew 7.9 percent to $2,000,000 thanks to the good commercial traction. Lastly, on Technology Solutions, revenue was up 20.2 percent to $11,900,000 mainly resulting from the consolidation of Oslo BPS and North Pool, but also from a solid core business performance. Moving to Slide 14 for the financial highlights of the quarter, let's start with EBITDA.
EBITDA grew 9.1 percent to EUR 117,800,000 this quarter. We already covered revenue. Therefore, I will focus mainly on costs and margin. Organic costs increased EUR 2,300,000 or 3.2%, mainly driven by lower capitalization cost compared to last year as well as cost related to the strategic plan. Overall, the EBITDA margin for the group decreased to 57.5% in the Q3 of 2020, down 1.9 points.
It is mainly due to our recent acquisition not fully optimized yet and diluting the group margin. Organic EBITDA margin was at 59.7 percent, this quarter up 1 point compared to last year. This quarter EBITDA margin of the newly acquired business was 35.9% with lower margin of North Pool partially offset by the higher than expected margin of VP Securities. More specifically, VP Security margin was boosted by the usual seasonal impact of the Q3 with lower cost and one off release of accruals on revenues. Finally, as Stefan mentioned, we expect cost from Oslo Board's VPS integration and the strategic project in the next quarter, which is why we confirm our 2020 cost guidance of a mid single digit growth compared to the annualized second half of twenty nineteen.
Moving to Slide 15 and net income. The net income increased this quarter 10.6 percent to EUR 70,200,000 as a result of the good operating performance. Adjusted for PPA and exceptional item, EPS was up 13.8% at €1.12 In details, we already covered the 1st building block of the waterfall EBITDA, so I will move on. D and A increased 17.8%, resulting mainly from the consolidation of recently acquired business and the impact of PPA. This quarter EUR 5,700,000 of our D and A are linked to the PPA of acquisitions.
EUR EUR 3,500,000 of exceptional costs were booked in the Q3 of 2020, primarily related to the contemplated acquisition of Borce Italiana and restructuring costs. Net financing expense for the Q3 of 2020 was EUR 3,400,000, up from EUR 2,000,000 in the Q3 of 2019. It mainly reflects the impact of foreign exchange rate and interest rate related to the TAP bond issue in June 2020. The tax rate was lower than last year at 26.4%, positively impacted by the reduced domestic tax rates as we expand our footprint in the Nordic region and other local tax rate tend to decrease across the Euronext countries. Lastly, I would like to highlight that we anticipate to book various exceptional costs in the Q4 of 2020 in relation to the integration of EP Security and the contemplated acquisition of the BOS Ipellana Group.
More specifically, we expect to expense between EUR 10,000,000 and EUR 15,000,000 in the Q4 of 2020. To conclude with financial, let's move to Slide 16. Net operating cash flow post tax for the quarter was EUR 71,700,000 impacted by changes in working capital of North Pool. As a consequence, the cash flow conversion scaled down from approximately 70% last year to circa 61%, Excluding the impact of Northpool, Euronext cash conversion is stable or would have been stable vis a vis 2019. Our net debt stands at EUR 710,000,000 representing a net leverage of 1.4 times pro form a over the last 12 months.
Gross debt was EUR 1,300,000,000 as of the end of the Q3 2020. Looking at the bottom of the slide, Euronext liquidity position remains strong, slightly under EUR 1,000,000,000 including the undrawn RCF of EUR 400,000,000. I now back the floor to Stephane, and we will be available for your questions at the end of the conference.
Thank you very much, Georgios. So in conclusion, Eurex has delivered a strong Q3, thanks to both recent diversification initiatives and our resilient core business. And Euronext delivers on its strategic goal of building the leading Pan European market infrastructure with the contemplated acquisition of Borrzeit Helena, which is in every respect an accelerator of the strategic plan released 1 year ago, Let's Grow Together 2022. So Jojo, Anthony and I are now available for your questions.
Thank you. And the first question comes from the line of Hailey Tam from Credit Suisse. Please go ahead.
Good morning, Stefan. Good morning, Georgiou. Two questions for me, please. Could I ask you one about the cash trading yield? At 0.54 basis points, it was actually higher than I had anticipated.
And I think you'd previously said a normal about 0.5. So I just wonder whether this is still due to smaller average trading sizes or if there's something else that's perhaps more permanent shift going on there? And the second question, just to help me understand, I'm afraid, the VP Securities, there was a €10,000,000 revenue contribution. You also mentioned some one off accrual releases. And I noticed the Q3 costs for the whole group haven't really increased all that much despite the inclusion of EPS VP Security, sorry.
So I just wondered if you can give us some idea of the normal run rate perhaps that we should include from this business. Thank you.
Thank you very much for your question. With respect to the revenue capture on cash trading, I confirm what I said. We're leaving very specific market conditions, and therefore, we do not anticipate the rate of 0 point 54 basis points to be sustainable in the long run. And we believe that revenue capture closer to the one of the previous quarter is going to be more sustainable. Again, it's a combination of many factors, out of which the reduction of the average trading side is one of those.
Increased retail participation is another. But to answer specifically your question, we confirm what we said. This is the result of very specific market condition. We do not expect it to be a new normal. When it comes to the cost base and to the revenues of VP Securities, so the release clearly impacts the margin, but is below EUR 1,000,000 so is not super material.
When it comes to the and I believe that some other would have the same question with the cost guidance for 2020, I need to say and explain a few elements. The first element is that the cost of the 3rd quarter benefit from a seasonal reduction of cost, which is linked to the holiday season. So every single quarter in the last many years, the Euronext group has a slightly lower cost base because of this impact. And this seasonality is present as well in the Nordic region, where usually the cost of the Q3 are lower with respect to the cost of other quarters. So the Q3 is not a good quarter to start projecting.
The second element, we confirm this quarter the mid single digit cost guideline that clearly excludes the new acquisition. Let me state a few things in this respect. It is important to understand that at this very moment, Euronext, it depends the way you look at it as either a benefit in terms of cost coming from the exchange rate or a negative cost on revenues, which means that if you look at the evolution of euro against the currencies which are relevant for us. This usually translates in slightly lower cost. And therefore, our cost guidance clearly did not take into consideration potential changes of exchange rate.
So what I can say is that if you take into consideration the fact that the mid single digit is a range and the impact of foreign exchange rate and the fact that the Q3 is not a good starting point to project, I believe that it's going to be easier for you to rationalize the reason why we're confirming our target for the 2020 cost base.
Okay. Thank you very much.
Thank you. The next question comes from the line of Philip Mittelstlopologies, Philip Mittelstlop from Bank of America. Please go ahead.
Thank you
and good morning. That was very clear. I wondered if you could also just say, are there any one offs in the post trade revenues? Because it does look a very, very strong number, maybe stronger than I suppose most people are expecting. Also, could you comment a little bit more about the tax rate, what you think is sustainable for the next few quarters?
I don't know if you want to say about the recent system outage you had as well. Thank you.
So Good morning. I'll take the questions on the outage and Giorgio will take the question on the tax rate and on the revenues of the BP Securities in Copenhagen. So we had one outage on the 2019 October and following this operational incident, measures have been taken to ensure that all operations are secure. The Euronext managing board is undertaking a full review of the procedures of the processes to ensure the smooth running of all operations going forward. I think it's important to note that the issue was not due to a problem in the proprietary code of OPTIC, but it was due to a bug in a 3rd party component in a 3rd party middleware.
So what I want to say is that clearly Euronext has invested heavily in technology, in capacity, in latency and processes. This has allowed us to deliver a platform which is cutting edge that has been extremely stable and resilient since it was released. We this platform did an amazing job during the peak of volatilities and volumes in March, April May. And we believe that it is the backbone of the Euronext project, which is all about building a single liquidity pool enabled by a single order book and powered by a single technology platform. And that irrespective of this particular incident was material and which we are addressing in a close dialogue with clients, with regulators and where all the relevant appropriate measures have been taken, both the short term ones and the long term ones that is in process of being rollout.
It's important not to put to lose perspective. And the perspective is that the platform works, the platform is efficient, the platform is more stable than some other platforms and the model is exactly what consistent with what the clients expect. The clients want to reduce complexity. The clients want to reduce cost. The clients want deeper liquidity.
The clients want the stakeholders want an integrated market within the European Union, the regulators, the policymakers want to build the Capital Markets Union and to have a sort of backbone to enable this Capital Markets Union and this is what we are doing. So this glitch, this outage was material and we are addressing it, but let's not lose the perspective.
When it comes to your first question related to post to the performance of the RCSDs, there is nothing specific in terms of one off. It's a very good organic performance. It's fair to say that clearly this business is for the vast majority driven by it's a function of the asset under custody, but there is a portion which is linked as well to the volume of activity. And in this respect, there are a few elements which are relevant and might be impacted by COVID. One is the number of accounts that have seen a very significant increase in the Nordics and this is to a certain extent a parallel to the increased trading activity that we have seen on cash trading.
And the other one is the number of settlement destruction, which is again could be linked to volatility. But nothing to be tax rate, we already guided for a reduction over time of the tax rate because pretty much across the board, all Euronext countries are expected to reduce their tax rate. Now clearly, the consolidation of Nordic countries speeds up that element because the average tax rate is at or below 25%. So this has an impact. The last comment, so going forward, I believe that in the next quarter, you should expect a tax rate, which is around 27%.
Now it's fair to say as well and it is very important that some of the exceptional costs are not going to be tax deductible. So you should expect potentially the tax rate to be higher on a nominal basis the quarters where we expense the most exceptional items.
Thank you. The next question comes from the line of Benjamin Goy from Deutsche Bank. Please go ahead.
Yes, hi, good morning. Two questions, please. First, the Q3 was not in particularly a very favorable environment for the industry, but still you grew 3.4% and thereby above your 2 0.3% guidance range. Just wondering what this quarter tells us about the underlying run rate or growth rate for Euronext going forward? And then secondly, on Corporate Services, another strong quarter, obviously.
Yes, just wondering on the billing model and how recurring these revenues can be.
Thank you.
So when it comes to the growth rate, at the moment, we do not intend to change the guidance, which is 2% to 3%. Then clearly, with the inclusion of Bost Itliana, which will contribute for 1 third of the overall group revenue, for sure, we will need to come back to the market with more holistic type of targets. We're aware of that, but it's too soon at the moment. When it comes to corporate services, what I can say is that those revenues are extremely resilient and are based on those are fixed and contracted revenues. So there is some light seasonality throughout the quarters, more specifically for the activities which are related to corporate events.
So you should expect some quarters to be higher than others. But apart from that, there is no any specific link to volatility or the current conditions. So you should expect those revenues to be very stable and growing.
Okay. Thank you.
Thank you. The next question comes from the line of Arnaud Ghibli from Exane. Please go ahead.
Good morning. I've got 3 questions, please. Just to come back to your cost guidance. I think you said during your remarks, you're talking about EUR 10,000,000 to EUR 15,000,000 of integration costs for VPS and Porpoise Vittaliana. And you also flagged, I think, a ramp up from strategic projects in Q4.
So I was wondering if you can give the magnitude of the strategic projects costs or if that's already included in that EUR 10,000,000 to EUR 15,000,000 step up? And second, on North Pool, what share of the power market is currently traded over the counter? I'm wondering if where that stands. And if you're seeking to roll out Nord Pool into other new countries? Thank you.
So it's clear, maybe I missed the intermediate question, but let's start with the first one. So there are a few elements. The element on which I did make a comment is that clearly, what we anticipated in the Q2 is that there would have been a certain amount of integration cost for VP Securities. And those are going to be the bulk of the EUR 10,000,000 EUR 15,000,000 that I commented. As you know and as we did last year, once we finalized the assessment of the restructuring cost, we booked the provision and this is exactly what we've done last quarter.
So what you should expect is that out of the EUR 10,000,000 EUR 15,000,000, the bulk of it is going to be nothing more than what we announced for repeat plus additional cost that we will expense for project cost of Bors Itliana. Those elements are outside of the 5% or mid single digit type of growth rate that we guided the market. So this is an additional layer that I wanted to share with the market. The rest, I already commented, I believe. We confirmed the 5%.
It is clear that we might have good surprise coming as well from exchange rate. Then when it comes to your question, do we intend to expand North Pool? The answer is yes. We are active in many countries and we are growing our market intermediate question. Could you repeat that?
Yes. Just what is the share of on exchange traded versus over the counter exchange traded in where NOPL currently operates? I'm not
sure that we have this KPI. What I can say with you is that clearly on the Nordic market, the market share is pretty much very close to 200%. And the market share in other European markets are growing. But those are markets within the on book. So it does not include Odyssey.
Okay. Thank you.
Thank you. Before going to the next question, I'd like to remind all participants that you can press The next question comes from the line of Albert Blaaf from ING. Please go ahead.
Yes, good morning. It's Albert Plouf from ING. We have basically 2 small questions left from my end. The first one is on the integration costs of Oslo in the strategic plan. I think it was something like €18,000,000 €12,000,000 €30,000,000 in total.
I hear what you say for the Q4, but can you give some idea what was left of those envelopes, if you like, for 2021, 2022? That will help us, I think, a bit with our models. The second question is a bit related to the Borsa Itliana potential acquisition just on the bridge financing facility. How should I see that? And I guess the costs will start to come through from that already from the Q4 onwards.
Can you share some ideas what that is kind of material or not very material for our models as well? Thank you.
No. I understand you should I believe that for the next quarters, I will try to guide you the best I can, having in mind that certain costs are going to be triggered by decision, which are not necessarily ours because there are success fees, etcetera. So what I can anticipate, again, just to make it clear that the costs that we're booking at the moment are more related to the consultant lawyers, etcetera. Those type of going to be closer to the execution of the deal and are going to be going to be closer to the execution of the deal and are going to be more success based. So again, out of the EUR 10,000,000, EUR 15,000,000, the bulk of that is going to be VP restructuring cost.
And the reminder is the cost of advisers that the fees which are not success based. Then when it comes to Oslo Bors, we did expense at the moment already more than 50%. The full KPIs on the Oslo Borse acquisition, we will release them in Q4 for the simple reason that after the migration, we will have a more complete picture because as you can expect, a very significant portion of the savings are going to be linked to the migration from Millennium IT to OpTic. So at the end of the Q4, we will give you a clear snapshot on where we are on synergies achieved and
Understand.
Thank you. There are currently no further questions in the queue. And we do have another question in the queue, and that comes from the line of Bruce Hamilton from Morgan Stanley. Please go ahead.
Hi, good morning guys, and thanks for the answer so far. Just a small question, and it feels a bit unfair to quibble on what a good set of numbers. But the data revenues will go up year over year, obviously down a bit versus the Q2 and a bit lighter at least to the consensus expectations. Is there anything sort of one off there? Or is there any reason why there would be seasonality in that line?
Or how should we think about that? Because obviously, that's one of the areas one would probably look to be growing decently over time.
No. I mean, there is nothing to be surprised. The element where there is a bit of seasonality is are the index revenues, which are based on the AUM that we build on the family of indices that we have developed. And those tend to have a volatility because we build based on the data that we report, and these tend to be more volatile. So actually, a better picture of the direction of travel is having a median between quarter rather than point in time.
Apart from that, the business is growing nicely. This quarter, those revenue was slightly below the one of the previous quarter. But again, it's more related to type of billing between quarters
The The next question comes from the line of Gurjit Kambo from JPMorgan. Please go ahead.
Hi, good morning. Just one question for me. Just on the derivative trading side, obviously, the revenue per lot declined mainly to do with the single stock and dividend futures. Guess, how do we think about that going forward? I know it's going to depend on mix, but is there any sort of new products that you're launching, which might mix that impact that revenue per lot going forward?
Just anything how to sort of think about that over the next few quarters?
So the key driver, it's a very fair question. So at the moment, we have 3 types of products. The commodities that at the moment are recording record high volumes at the highest revenue capture among all the products. Then we have the new products that, as you correctly mentioned, have slightly lower fees. And then we have the bulk of our products, which, like any other derivative product is offering at the moment mainly due to the lack of visibility on dividends, which is a fundamental element for the pricing and trading of derivatives.
So what has happened is that when you see relatively stable volumes year to date, the reality there has been a significant shift, I. E, our core franchise in terms of volumes has reduced significantly like any other market for the reason I mentioned and the gap has been filled by new products. Now anything that will give better visibility on derivatives and could fuel derivative market would bring back to a certain extent the mix, but it's very difficult to anticipate. So for the next quarter, I believe that it's a little bit of difficult to anticipate. But again, what we are seeing at the moment is a mix, which is similar to the one of the previous quarter with a stronger contribution of derivatives.
But again, it's very I tried to explain you the different building blocks, but it's very difficult to predict how it's going to be the mix. We all opt that the derivatives volumes are going to be back at the level they were in the Q2.
Okay, great. Thank you.
Thank you. There are no further questions in the queue. So I'll hand the call back to our speakers to conclude today's call.
Thank you very much for your time. I wish you a very good day.
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