Exchange turnover in investment and leverage products has increased by 2% year-on-year as at the end of June 2017, according to the European Structured Investment Products Association (Eusipa). "We see strong primary market growth, coming in particular from investment products," said Thomas Wulf, secretary general of Eusipa. "This suggests a broadening spectrum of retail clients consider structured products a fundamentally useful and value added completion of their portfolios. Generally, developments reflect the mid-term trend of rather bullish stock markets in the Eurozone and beyond."
Exchange turnover for investment products was up 2% on the previous quarter, a marked increase of 29% year on year with the outstanding volume of leverage products standing at €35.7bn at the end of June, down 5% on the previous quarter, but surging 49% year-on-year, according to Eusipa. Compared to the first quarter, Eusipa's data shows a fall on the quarter, with turnover down 5%, to €29.1bn; second quarter turnover in investment products trading on European exchanges amounted to €12.7bn, representing 43.6% of total turnover.
From April to June, turnover in leverage products (such as warrants, knockout warrants, factor certificates) totalled €16.4bn which corresponds to 56.4% of aggregate turnover. Leverage product turnover fell 9% on the first quarter and 12% year on year. According to Eusipa, exchanges in member countries were offering 561,746 investment products and 1,027,365 leverage products at the end of June. The total listed products offering rose 3% on the previous quarter and 18% on the same period of 2016.
Banks issued 878,000 new investment and leverage products in the second quarter of the year, a 10% increase on the year, with 146,576 new investment products (16.7% of new issuance) and 731,424 new leverage products listed, accounting for 83.3% of aggregate new issues.
In Austria, Belgium, Germany and Switzerland, the market volume of investment and leverage products recognised as securities stood at €259.6bn - a 4% decrease on the previous quarter, but an 8% increase on Q2 2016.
At the end of June, the market volume of investment products was up 3% on the year, although down 3% quarter on quarter, at €223.9bn.
SRP data shows that year to date the number of structured products including tranche, non-retail, leverage and flow launched across Europe amounted to 749,998 issues with an estimated sales volume of €46.4bn.
According to SRP, issuance across European markets was led by BNP Paribas (123,802 products), followed by Citi (115,991 products), Deutsche Bank (107,926), Commerzbank (97,610) and Vontobel (95,159). In addition, Vontobel holds the highest market share (11%) in Europe with €5.3bn in sales, followed by Societe Generale (€4.2bn/9%), BNP Paribas (€3.6bn/7%), Credit Agricole (€2.78bn/6%) and Unicredit (€2.76bn/6%).
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