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WFE Focus February 2011
2010 WFE market highlights

2010 volumes are stable in value but decreasing in number of trades leading to an unexpected rebound in the average value of trade

In terms of share trading value , volumes were stable (+1.7%) at USD 63 trillion in 2010, still at a relatively low level compared to the 2008 high (-27.7%). The Americas were slightly negative (-0.8%) compared to a modest progression in Asia Pacific and EAME, +5.1% and +4.0% respectively.

When looking at volumes, a very interesting trend, given this stability of share trading value, is the sharp decrease of the number of trades: -9.8% in 2010 globally across all WFE members. In addition there are important regional divergences with the Americas accounting for most of this decrease (-22.3%) compared to a relative stability in Asia Pacific and EAME, -2.2% and +3.1% respectively.

This divergence between the evolution of the number of trades and their values logically has an impact on the average value of trade . Whereas this average value has tended to decrease regularly over the last 10 years (see 10 years in review, WFE 2010 ), it has been up +13.7% in 2010 (average value of around USD 8 500). The rebound is very remarkable in the Americas where it is up +28.3%, less so in Asia Pacific (+13.2%), whereas in the EAME, the average value declines slightly (-4.6%).

Please note that the Asia Pacific figure is skewed downwards because it does not include Tokyo Stock Exchange which could not provide its number of trades in 2008 and 2009. To be fully comparable the graph above does not include this exchange. When including Tokyo Stock Exchange in 2010, the average trade value for Asia Pacific was around USD 5 200 and the WFE average trade value was around USD 8 700.

Global market capitalization confirmed the 2009 rebound

In 2010 total market capitalization of WFE members increased to USD 54.8 trillion (+14.9% year on year) and almost bounced back to its 2007 highest ever (USD 60.8 trillion). This rebound confirms the movement observed last year (+45.5% in 2009), and compared to the lowest level of the financial crisis (USD 32.5 trillion), the progression is spectacular (+68.4% in two years).

All regions were up, EAME (+7.4%) lagging a little bit behind Asia-Pacific (+19.5%) and the Americas (+17.1%).

Securitized derivatives

Volumes on this segment which has been a successful business development for some WFE members was up 31.4% in 2010 with important regional differences (Asia Pacific confirming its leadership with a +41.2% growth).

ETFs

This segment has been slightly declining (-3.4%) mostly because of the Americas figure (-5.9%) which is heavily dominating this market.

Bond trading up 19.8%

As some WFE members have been focusing more on fixed-income and have tried to develop this business segment, volumes were up in all regions.

Derivatives markets

Derivatives markets were stable in 2010 (+2.4% in terms of contracts traded). The upcoming IOMA survey will provide more details on derivatives markets as they offer more complete statistics on these products.

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