European structured products market slightly weaker
European structured products market slightly weaker
Exchange turnover down in third quarter.
Slight decline in market volume.
Turnover in investment certificates and leverage products on the European exchanges was down 17.9 percent to EUR 22.2 billion in the third quarter of 2013 in comparison with the previous quarter. Year on year, there was a more moderate decline of 7.3 percent in European exchange turnover. This is one of 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.
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), the Swedish Exchange Traded Investment Products Association (SETIPA) and the Swiss Structured Products Association (SSPA).
In the period from July to September 2013, turnover in investment products on the exchanges of member countries fell to EUR 10.1 billion, a drop of 14.2 percent in comparison with the same period of 2012. Investment certificates accounted for 45.5 percent of the total volume of the exchanges of member countries at the end of September.
Turnover in leverage products was comparable with 2012, with the trading volume at EUR 12.1 billion. This represented just a marginal decline of 0.6 percent in comparison with the same quarter of 2012. Turnover in leverage products accounted for 54.5 percent of the total turnover.
The range of products offered on the exchanges of EUSIPA member countries at the end of the third quarter comprised 450,559 investment certificates and 639,584 leverage products. This represented an increase of 2.7 percent in comparison with the previous quarter. The number of investment certificates listed was up 3.3 percent in comparison with the same quarter of 2012, and the number of leverage products was up by 9.6 percent.
Between July and September 2013, banks launched 550,042 new investment certificates and leverage products. The number of new issues of structured securities was up 2.0 percent. Leverage products accounted for 424.751, or 77.2 percent, of the new issues. Investment products accounted for 125,291, or 22.8 percent.
The market volume – or open interest – in Austria, Germany and Switzerland at the end of September was EUR 227.4 billion. This compared with EUR 238.0 billion at the end of the previous quarter. Investment products accounted for EUR 219.3 billion of the market volume at the end of the third quarter of 2013, down 2.4 percent on the previous quarter. Leverage products accounted for EUR 8.1 billion of the total volume, down 39.1 percent on the previous quarter.