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Turnover falls on European market for structured securities

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Exchange turnover in investment products and leverage products fell on Europe’s financial markets in the third quarter of 2016. 

Compared with the second quarter of the year, the volume dropped by 9.0 per cent to EUR25.4 billion. 
 
This represented a 26 per cent decrease year on year, according to analysis by Derivative Partners of the latest market data collected by the European Structured Investment Products Association (EUSIPA) from its members.
 
The third quarter turnover in investment products trading on European exchanges amounted to EUR9.2 billion. This represented a 36.2 per cent share of total transaction volume. Exchange turnover was on a par with the previous quarter’s level and up 3.0 per cent on the figure recorded a year earlier. 
 
Turnover in the leverage products segment (warrants, knock-out warrants, factor certificates etc.) came to EUR16.2 billion in the period from July to September. They accounted for 63.8 per cent of the total turnover. The volume was 13.0 per cent lower than in the second quarter of 2016. This represented a year-on-year loss of 37.0 per cent.
 
At the end of September, trading venues located in EUSIPA member countries were offering 549,495 investment products and 827,523 leverage products. The number of products listed rose by 3.0 per cent in comparison with the previous quarter. The figure was down by 2.0 per cent on the same period of 2015.
 
Banks issued a total of 839,744 new investment and leverage products in the third quarter of the year. Compared with the period from April to June, new issuance saw a 5.0 per cent upsurge. However, volume decreased by 10.0 per cent on a year-on-year basis. In total 191,778 new investment products were launched, accounting for 22.8 per cent of all new issues. 647,966 new leverage products were listed, accounting for 77.2 per cent of the aggregate new issues volume.
 
At the end of the third quarter, the market volume of investment and leverage products in Austria, Belgium, Germany and Switzerland came in at EUR255.8 billion – up 6 per cent on the figure recorded in the previous quarter. The volume rose by 16.0 per cent when compared with the third quarter of 2015.
 
At the end of September the market volume of investment products totalled EUR216.0 billion and was on about the same level as in the second quarter. On a year-on-year basis, turnover was up 2.0 per cent.
 
The outstanding volume of leverage products climbed to approximately EUR39.8 billion in the third quarter of the year. This represented growth of 66.0 per cent on the second quarter of 2016. In comparison with the same period of the preceding year, outstanding volume registered plus 336.0 per cent. This increase is mainly attributable to developments in Switzerland.
 
The members of EUSIPA include: Zertifikate Forum Austria (ZFA), Belgian Structured Investment Products Association (BELSIPA), Association Française des Produits Dérivés de Bourse (afpdb), Deutscher Derivate Verband (DDV), Associazione Italiana Certificati e Prodotti di Investimento (ACEPI), Swedish Exchange Traded Investment Products Association (SETIPA), Swiss Structured Products Association (SSPA) and the Netherlands Structured Investment Products Association (NEDSIPA).

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