Cash & Liquidity ManagementInvestment & FundingCapital MarketsEurope Structured Products Markets see Volumes Dip

Europe Structured Products Markets see Volumes Dip

Trading in investment products and leverage products on the European financial markets fell in the second quarter of 2014. At €26.4bn, trading volume was down 21.0% from Q114. Exchange turnover was down 9.8% in comparison with the same quarter of 2013.

These are among the findings 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.

EUSIPA’s members 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).

Trading volume of investment products on the European exchanges in Q214 was €9.4bn, 35.6% of the total turnover. Exchange turnover was down 27.2% from Q1 and by 27.9% compared with the second quarter of 2013.

Exchange turnover in leverage products in the second quarter was €17.0bn, 64.4% of the total turnover. The trading volume of warrants, knock-out warrants and factor certificates was down 17.1% from Q114, but up 4.8% in comparison with Q213.

At the end of June, the exchanges of EUSIPA member countries were offering 485,140 investment products and 692,813 leverage products. The number of listed products was down around 2.6% from Q114. The number of investment products listed was down 9.1% on June 2013, while the number of leverage products was up 12.4% year on year (YoY).

Banks issued 540,269 new investment products and leverage products in Q214, representing a decline of 19.7% from Q1. Investment products accounted for 22.2% of the new issues, with 120,161 new securities. Leverage products accounted for 77.8% of new issues, with 420,108 securities.

Market volume in Austria, Germany and Switzerland at the end of June was €251.7bn. The outstanding volume was up 0.4% from the end of March 2014, and by 5.8% in comparison with the end of June 2013.

At the end of Q214, the market volume of investment products was €238.8bn, an increase of 0.2% from the end of March 2014, and 6.3% up from the end of June 2013.

At €12.9bn, the outstanding volume of leverage products was up 4.4% in comparison with the previous quarter, but down 3.1% from the end of June 2013.

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