Exchange turnover in investment products and leverage products increased on Europe’s financial markets in the first quarter of 2017. Compared with the fourth quarter of 2016, turnover rose by 8.0 per cent to EUR30.5 billion.
However, this still represents a 9.0 per cent decrease year on year. Those are some of the outcomes of an analysis by Derivative Partners AG of the latest market data collected by the European Structured Investment Products Association (EUSIPA) from its members.
The members of EUSIPA providing input to the report are: 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).
The first quarter turnover in investment products trading recorded on European exchanges amounted to EUR 12.4 billion. This represented a 40.7 per cent share of the total turnover. Exchange turnover was up 14.0 per cent on the prior quarter’s level and 21.0 per cent above the figure achieved in the same quarter the previous year.
In the period from January to March, turnover in the leverage products segment (Warrants, Knock-Out Warrants, Factor Certificates etc) totalled EUR 18.1 billion. This corresponded to 59.3 per cent of the total turnover. The figure increased by 5.0 per cent on the fourth quarter of 2016 and lost 22.0 per cent year on year.
At the end of March, trading venues located in contributing EUSIPA markets registered a product offering of 584,814 investment products and 951,453 leverage products. The aggregate offer of listed products rose by 6.0 per cent in comparison with the prior quarter. The figure was up by 9.0 per cent on the same period of 2016.
Banks issued a total of 902,710 new investment and leverage products in the first quarter of the year. Compared to the period from October to December 2016, new issues activities remained at the same level. The figure decreased by 5.0 per cent when seen on a year-on-year basis. In total 189,115 new investment products were launched, accounting for 20.9 per cent of all new issues. 713,595 new leverage products were listed, accounting for 79.1 per cent of the aggregate number of new issues.
At the end of the first quarter, the market volume of note-based investment and leverage products in Austria, Belgium, Germany and Switzerland came in at nearly EUR 269.5 billion – a 4.0 per cent increase on the figure recorded for the previous quarter. The volume rose by even 12.0 per cent when compared with the first quarter of 2016.
At the end of March the market volume of investment products amounted to EUR 231.8 billion – an increase of 5.0 per cent on the figure recorded at the end of the previous quarter. This means that market volume was also up by 5.0 per cent on a year-over-year basis.
The outstanding volume of leverage products slightly increased since the last quarter of 2016 and stood at EUR 37.6 billion at the end of March. This represented a slight increase of 1.0 per cent on the outstanding volume reported for the prior quarter. Compared with the figure reported for the same period of the previous year, there was a strong upsurge of 93.0 per cent.
