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European structured securities market reports turnover growth in leverage products

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Exchange turnover in structured investment and leverage products on Europe’s financial markets stood at EUR27.6 billion at the end of September 2017. This represents a significant 6.0 per cent increase year on year.

Turnover fell 5.0 per cent from the second quarter of the year.
That’s according to Derivative Partners AG’s analysis of the latest market data collected by the European Structured Investment Products Association (EUSIPA) from its members.
The EUSIPA members providing information for the market 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).
Third-quarter turnover in investment products trading on European exchanges amounted to EUR10.2 billion, 37.0 per cent of the total. Exchange turnover was down 19.0 per cent quarter on quarter, but up 4.0 per cent on the same quarter of 2016.
Leverage product turnover (Warrants, Knock-Out Warrants, Factor Certificates, etc.) totalled EUR17.4 billion from July to September. This corresponded to 63.0 per cent of aggregate turnover. Leverage product turnover was up 6.0 per cent on the second quarter of 2017 and 7.0 per cent year on year.
At the end of September, exchanges located in EUSIPA member countries were offering 565,533 investment products and 1,127,562 leverage products. The total listed products offering rose 7.0 per cent quarter on quarter, and a significant 23.0 per cent year on year.
Banks issued 944,879 new investment and leverage products in the third quarter of the year, up 8.0 per cent on April-June 2017 and 13.0 per cent year on year. In total, 160,426 new investment products were launched, accounting for 17.0 per cent of all new issues; the 784,453 new leverage products accounted for 83.0 per cent of aggregate new listings.
At the end of the third quarter, in Austria, Belgium, Germany and Switzerland, the market volume of investment and leverage products recognised as securities came in at EUR 256.6 billion – a 1.0 per cent drop on the previous quarter, though stable in comparison with the third quarter of 2016.
At the end of September, the market volume of investment products amounted to EUR 222.1 billion, a 1.0 per cent decrease from the end of the prior quarter. On a year-on-year basis, however, market volume was up 3.0 per cent.
The outstanding volume of leverage products totalled EUR34.5 billion at the end of September, down 4.0 per cent from the previous quarter and down 13.0 per cent on the same period of 2016.

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