European stock exchanges carrying structured products have generated a turnover of €22.8 billion despite flat issuance levels.
Exchange turnover in investment products and leverage products on Europe’s financial markets was down at the end of the third quarter. Compared with the first half of 2018, turnover fell by 11% to €22.8 billion. This also represents a 9% decrease year on year.
The leverage segment however was not able to match last year’s activity despite a 13% increase to €7.8 billion at the end of September. The outstanding volume of leverage products reported for the second quarter volume showed a 77% year on year.
Third-quarter turnover in investment products trading on the European exchanges amounted to €8.2 billion, 36% of the total. Exchange turnover was down 19% on the previous quarter and also down 19% on the same quarter of the previous year.
The third quarter saw the turnover in the leverage products segment which includes warrants, knock-out warrants, factor certificates, etc., totalled €14.6 billion, 64% of the total turnover which decreased by 6% from the previous quarter and 2% year on year.
At the end of September, trading venues located in exchanges of Eusipa member countries were offering 516,498 investment products and 1,231,390 leverage products. This represents a slight increase of one percentage point in the total offer of listed products from the previous quarter. The offer grew 4% year on year.
Investment banks issued a total of 1,127,704 new investment and leverage products in the third quarter of 2018. Issuance was unchanged from the April-June period, but there was a significant increase of 20% year-on-year. In total, 166,155 new investment products were launched, accounting for 14.7% of all new issues. 961,549 new leverage products were listed, representing 85.3% of the aggregate number of new issues.
At the end of the third quarter, in Austria, Belgium, Germany and Switzerland, the market volume of investment and leverage products recognised as securities stood at €261.6 billion – a 5% increase on the previous quarter, and a 2% from the same quarter of 2017.
At the end of September the market volume of investment products amounted to €253.8 billion – up 4% on the figure recorded at the end of the previous quarter, and 14% year-on-year.