Turnover in investment and leverage products on reporting European financial markets totalled EUR43 billion in the first quarter of 2021. Turnover increased by 23 percent quarter on quarter, though decreased by 13 percent year on year. These and other market data were sourced by the European Structured Investment Products Association (EUSIPA) from its members and analysed by Derivative Partners.
The members of EUSIPA who provide the figures for the market report include Zertifikate Forum Austria (ZFA), the Belgian Structured Investment Products Association (BELSIPA), Association Française des Produits Dérivés de Bourse (AFPDB), Deutscher Derivate Verband (DDV), Associazione Italiana Certificati e Prodotti di Investimento (ACEPI), the Netherlands Structured Investment Products Association (NEDSIPA), the Swedish Exchange Traded Investment Products Association (SETIPA), and the Swiss Structured Products Association (SSPA).
First-quarter turnover in investment products on European trading venues amounted to EUR 18 billion, 42 percent of the total traded volume. Investment product turnover increased by 40 percent on a quarter-by-quarter basis, while remaining largely stable compared with Q1 2020. Turnover in leverage products (Warrants, Knock-Out Warrants, and Constant Leverage Certificates) reached EUR 25 billion in the period from January to March, representing 58 percent of total turnover. Turnover in leverage products decreased 21 percent year on year and rose by 13 percent from Q4 2020.
At the end of March, trading venues located in reporting EUSIPA markets were offering 436,586 investment products and 1,331,678 leverage products. As such, the number of listed products increased by 5 percent on a quarterly basis and 16 percent on the previous year.
Banks issued 1,378,261 new investment and leverage products in the first quarter of 2021, a figure comparable to the previous quarter, but down 22 percent year on year. In total, 150,137 new investment products were launched, accounting for 11 percent of new issues; the 1,228,124 new leverage products represent 89 percent of the total. There were 27 percent fewer investment products launched than in the same quarter of 2020. On the leverage products side, issuance rose by 4 percent from Q4 2020, but decreased 21% on an annual basis.
For Austria, Belgium, Germany and Switzerland, the market volume of investment and leverage products issued as securities stood at EUR 293.5 billion at the end of the first quarter, representing a 4 percent quarter-on-quarter increase.
At the end of March, the market volume of investment products increased to EUR 283 billion – up 4 percent quarter on quarter and 19 percent year on year.
The outstanding volume of leverage products totalled EUR 10.5 billion at the end of March. This represents an 11 percent decrease on a year-on-year basis.