WFE Research Team , London , World Federation of Exchanges | Jan 2018

 

In this article we present a snapshot of key in trends in 2017. The upcoming 2017 Market Highlights report in February 2018 will contain a more comprehensive analysis.

Equity markets

  • Equity market indices soared to record high levels in markets across the globe, setting the backdrop for market activity in 2017.
  • Overall domestic market capitalisation at the end of 2017 was 22% higher than as at end 2016, reaching a new record high of 86.8 trillion USD, an all-time high in the five-year period under review. This increase was driven by an uptick in the domestic market cap across all regions.
  • Total number of listings was up 2.1%, with only the Americas experiencing a slight decline on 2016 (down 0.7%).
  • Value of trading in equity shares was 2.6% lower than in 2016. The only region which saw a pickup in turnover was the EMEA region (up 3.7% on 2016).
  • Number of trades in equity shares was 5.5% lower than in 2016, driven entirely by a 15.9% decline in volume traded in the Americas.
  • 2017 was a busy year on the IPO front with the number of new listings and investment flows through IPOs up by 47% and 47.3% respectively on 2016. All the regions recorded an uptick in IPO activity and capital raised on 2016.

Derivatives markets

  • Overall derivatives volumes traded were up 0.7% in 2017 vs 2016.
  • Single Stock options and futures volumes traded were 9.6% higher in 2017 vs 2016, driven by increases across all regions.
  • Stock Index options and futures volumes traded were 8.8% higher than in 2016. Only the EMEA region saw a decline in the volume traded (down 13.3%).
  • Interest Rate options and futures volumes increased in all regions leading to an overall 9.9% increase in the number of contracts traded on 2016.
  • Volumes traded of Commodity options and futures fell by 15.1%, entirely driven by the declines in the Asia-Pacific region (-25.7%) where over 50% of the trading takes place.
  • Currency derivatives also recorded a 3.2% decline in their volumes traded, a consequence of the fall in volumes traded in the EMEA region (down 19.8%).
  • ETF derivatives, which are predominantly traded in the Americas, recorded a marginal 0.2% increase in the volumes traded.

Other products

  • While ETF listings increased (up 5.6%), the value of trading in 2017 declined (-12.6%) on 2016.
  • Both listings and value traded of investment funds experienced a sharp fall on 2016 (down 20.6% and 12.7% respectively).
  • Fixed income product listings on exchanges picked up (+22.5%) on 2016 with increases across all regions.

December 2017 figures for LSEG are estimates are based on YTD averages. Please keep a look out for the Full Year 2017 Market Highlights report, due in early February 2018, for more detailed insights and analysis on key trends across markets in 2017.

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