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High launch level of structured products set to continue in Europe

by Uma Rajagopal
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iStock 1360337414

 

 

  • EUR 289 billion open interest across reporting markets / turnover slightly falling


Turnover in investment and leverage products on reporting European financial markets was down 1 percent quarter on quarter and 10 percent year on year in the third quarter of 2022, bringing the total to EUR 31 billion. These and other market data were sourced by the European Structured Investment Products Association (EUSIPA) from its members and analysed by Avaloq Evolution AG.

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), the Swiss Structured Products Association (SSPA), and the Luxembourg Structured Investment Products Association (LUXSIPA).

Third-quarter turnover in investment products on European trading venues amounted to EUR 8 billion, 25 percent of total traded volume. Investment product turnover decreased by 16 percent quarter on quarter and by 39 percent year on year. Turnover in leverage products (Warrants, Knock-Out Warrants, and Constant Leverage Certificates) reached EUR 23 billion in the period from July to September, representing 75 percent of total turnover. Turnover in leverage products increased by 6 percent year on year and by 4 percent from Q2 2022.

At the end of September, trading venues located in reporting EUSIPA markets were offering 414,250 investment products and 1,641,658 leverage products. As such, the number of listed products increased by 3 percent on a quarterly basis and by 14 percent on the previous year.

Banks issued 1,695,647 new investment and leverage products in the third quarter of 2022, down 1 percent on the previous quarter and up 35 percent annually. In total, 130,895 new investment products were launched, accounting for 8 percent of new issues; the 1,564,752 new leverage products represent 92 percent of the total. There were 10 percent more investment products launched than in the same quarter of 2021. On the leverage products side, issuance increased by 37 percent on an annual basis.

For Austria, Belgium, Germany and Switzerland, the market volume of investment and leverage products issued as securities decreased by 3 percent year on year and by 6 percent from the previous quarter to a total of EUR 289 billion.

At the end of September, the market volume of investment products stood at EUR 280 billion – down 6 percent quarter on quarter and 3 percent year on year.

The outstanding volume of leverage products totalled EUR 9 billion at the end of September. This represents a 13 percent decrease on a year-on-year basis.

 

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Uma Rajagopal has been managing the posting of content for multiple platforms since 2021, including Global Banking & Finance Review, Asset Digest, Biz Dispatch, Blockchain Tribune, Business Express, Brands Journal, Companies Digest, Economy Standard, Entrepreneur Tribune, Finance Digest, Fintech Herald, Global Islamic Finance Magazine, International Releases, Online World News, Luxury Adviser, Palmbay Herald, Startup Observer, Technology Dispatch, Trading Herald, and Wealth Tribune. Her role ensures that content is published accurately and efficiently across these diverse publications.