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Upward trend continues on European structured products market

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Exchange turnover in investment products and leverage products decreased slightly in the second quarter of 2015 on Europe’s financial markets. Compared with the first three months of the year, volume was down marginally by 2 per cent to EUR 38.6 billion. However, there was a 46 per cent increase year on year.

This is one of the outcomes of an analysis by Derivative Partners Research AG 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), Swedish Exchange Traded Investment Products Association (SETIPA), Swiss Structured Products Association (SSPA) and the Netherlands Structured Investment Products Association (NEDSIPA).
The trading volume of investment products on the European exchanges stood at EUR13.9 billion in the second quarter of the year, accounting for 36 per cent of total turnover. Exchange turnover increased by a modest 1 per cent from the previous quarter and, significantly, by 48 per cent on the same period of the preceding year. 
The trading volume of leverage products such as Warrants, Knock-Out Warrants and Factor Certificates totalled EUR24.7 billion from April to June. They therefore accounted for 64 per cent of total turnover. Although this means exchange turnover decreased by 3 per cent from the first quarter of 2015, it represents a strong year-on-year increase of 45 per cent.
At the end of June the exchanges of EUSIPA member countries were offering 579,600 investment products and 829,816 leverage products. The number of products listed increased by 1.7 per cent from the preceding quarter and by 19.6 per cent year on year.
Banks released 814,096 new investment products and leverage products in the second quarter of the year. The strong new issuance of the first quarter slowed somewhat in the period under review, decreasing by 17 per cent compared with the first three months of the year. In comparison with the second quarter of 2014, however, issuing volume increased by 51 per cent year on year. A total 179,448 new investment products were launched, accounting for 22 per cent of all new issues. All in all, 634,648 new leverage products were listed, accounting for 78 per cent of new issues.
At the end of the second quarter, the market volume of investment and leverage products in Austria, Germany and Switzerland stood at EUR277.7 billion – up 6  per cent on the first quarter of the year. The volume rose by 10 per cent year on year.
At the end of June the market volume of investment products totalled around EUR 233.2 billion and was 2 per cent lower, both year on year and quarter on quarter.
At EUR44.5 billion, the outstanding volume of leverage products was up 245 per cent from end June 2014 and 91 per cent from the previous quarter.

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