Exchange turnover in investment products and leverage products on Europe’s financial markets were up at the end of the first quarter of 2018, according to an analysis by Derivative Partners AG of the latest market data collected by the European Structured Investment Products Association (EUSIPA).
Compared with the fourth quarter of 2017, turnover rose by 12.0 per cent to EUR32.5 billion. This also represented a 14.0 per cent increase year on year.
The members of EUSIPA who provide the figures for the market report 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).
First-quarter turnover in investment products trading recorded on the European exchanges amounted to EUR13.4 billion. This represented a 41.2 per cent share of total turnover. While exchange turnover was down 6.0 per cent on the prior quarter, it was up 8.0 per cent on the same quarter of the previous year.
In the period from January to March, turnover in the leverage products segment (Warrants, Knock-Out Warrants, Factor Certificates etc.) totalled EUR19.1 billion. This corresponded to 58.8 per cent of total turnover. Exchange turnover increased 29.0 per cent on the fourth quarter of 2017 and was up 19.0 per cent year on year.
At the end of March, trading venues located in EUSIPA member countries were offering 536,010 investment products and 1,203,673 leverage products. The aggregate offer of listed products rose by 2.0 per cent from the previous quarter. The offering increased by as much as 14.0 per cent year on year.
Banks issued 1,146,707 new investment and leverage products in the first quarter of this year. Compared with October to December 2017, this represents a 17.0 per cent upsurge in new issuance. There was a strong year-on-year increase of 27.0 per cent. In total 162,177 new investment products were launched, accounting for 14.1 per cent of all new issues. 984,530 new leverage products were listed, representing 85.9 per cent of aggregate new issues.
At the end of the first quarter, in Austria, Belgium, Germany and Switzerland, the market volume of investment and leverage products recognised as securities stood at EUR 237.8 billion – a 9.0 per cent decrease on the figure recorded for the previous quarter. In comparison with the same quarter of last year, volume shrank by 12.0 per cent.
At the end of March the market volume of investment products totalled EUR 229.5 billion – an increase of 2.0 per cent on the figure recorded at the end of the previous quarter. Thus, the market volume was slightly down by 1.0 per cent on a year-on-year basis.
The outstanding volume of leverage products stood at EUR8.4 billion at the end of March. This represented a fall of 76.0 per cent on the volume reported for the fourth quarter of 2017 and a drop of 78.0 per cent year on year.