Trading in investment certificates and leverage products on the European financial markets continued to rise appreciably in the first three months of 2014.
At EUR33.4 billion, trading volume was up 25.4 per cent on the previous quarter and 24.4 per cent in comparison with the first quarter of 2013.
This is one of the findings of an analysis by Derivative Partners Research of the latest market data collected by the European Structured Investment Products Association (EUSIPA) from its members.
The members of EUSIPA include: Zertifikate Forum Austria (ZFA), Association Française des Produits Dérivés de Bourse (afpdb), Deutscher Derivate Verband (DDV), Associazione Italiana Certificati e Prodotti di Investimento (ACEPI), the Swedish Exchange Traded Investment Products Association (SETIPA), the Swiss Structured Products Association (SSPA) and the Netherlands Structured Investment Products Association (NEDSIPA).
The trading volume of investment products in the first quarter of 2014 was EUR12.9 billion. This represents an increase of 7.1 per cent from with the same quarter of 2013. Investment products accounted for 38.6 per cent of total turnover.
Trading in leverage products in the first three months of the year was also lively. At EUR20.5 billion, the trading volume of products such as Warrants and Knock-out Securities was up 38.4 per cent year on year. Leverage products accounted for 61.4 per cent of the total turnover.
At the end of the first quarter, the exchanges of EUSIPA member countries were offering a range of 503,166 investment certificates and 706,185 leverage products. The number of listed products was up 7.9 per cent in comparison with the fourth quarter of 2013. The number of investment products listed was up 12.0 per cent year on year, while the number of leverage products was up 15.2 per cent.
Banks issued 672,407 new investment certificates and leverage products between January and March 2014. This represents an increase of 15.4 per cent in the number of new issues in comparison with the previous quarter. Leverage products accounted for 75.9 per cent of new issues, with 510,376 new securities. Investment certificates accounted for 24.1 percent, with 162,031 new securities.
The market volume in Austria, Germany, and Switzerland at the end of March was EUR250.8 billion. The outstanding volume was up 1.1 per cent in comparison with the end of December 2013, and by 1.5 per cent in comparison with the first quarter of 2013. At the end of the first quarter of 2014, the market volume of investment certificates was EUR238.4 billion – an increase of 1.6 per cent in comparison with the end of December 2013. The outstanding volume of leverage products fell by 7.7 per cent to EUR12.4 billion.