London, 15 February 2018 – The World Federation of Exchanges ("The WFE"), the global industry group for exchanges and CCPs, today published its 2017 Full Year Market Highlights report.

2017 ended on a strong note for stock markets worldwide. Benchmark market indices soared to record-high levels in markets across the globe, setting the backdrop for market activity in 2017. Market valuations soared and IPOs rebounded; however, secondary market activity was muted with value and volume of shares traded and investment flows through already-listed companies down on 2016.

KEY HIGHLIGHTS

Nandini Sukumar, CEO, The WFE commented: "Today's report looks back at an exceptionally strong year for stock exchanges worldwide, with many indices climbing to record peaks. Set against the current backdrop of widespread market volatility, however, we are reminded once again of the resilience and stability of exchanges and CCPs, and their ability to successfully steer through periods of profound unpredictability."

According to the WFE's full-year statistics, the key trends of 2017 when compared to 2016 were as follows:

This increase in domestic market capitalisation was against a backdrop of a synchronised global recovery in GDP growth rates, the continuation of accommodative monetary policy in many regions, low levels of inflation, low market volatility, recovering commodity prices and strong corporate profits. One of the key highlights of 2017 was the sustained period of record low volatility and increases in stock market valuations across many markets, despite ongoing political tensions in the domestic and international geopolitical space.

The momentum in markets was also sustained by market participants who appeared to be pricing in expected future gains from developments such as the tax overhaul by the US government, the Chinese government agenda to lower financial risk and implement structural reforms, the bank recapitalisation programme in India, gradual progress on Brexit negotiations, and election outcome driven optimism in Europe.

Both developed and emerging markets posted strong gains in market valuations – with a noteworthy 70.1% increase in the domestic market cap of the Argentinian market (Bolsa de Comercio de Buenos Aires) against a backdrop of sweeping structural and economic reforms.

- In the Americas, IPO listings and investment flows were up 85.1% and 146.2% on 2016. In the US, which accounted for a major share (65.7%) of the IPOs in the region, technology and healthcare companies accounted for a bulk of the IPOs and there was a surge in the number of Asian companies listing on US exchanges. Canada's TMX Group also saw an increase in the number of companies going public, particularly in the mining and energy sector, while Brazil's B3 and Mexico's BMV exchanges saw some much-anticipated IPOs such as of Petrobras Distribuidora SA (Energy) and Jose Cuervo (Consumer staples) take place in 2017.

- In the Asia-Pacific region the increase in the number of listings and investment flows through IPOs was 40.4% and 21.3% on 2016. Some key highlights included an increase in the number of listings due to faster regulatory approvals for IPOs in China; a surge in the number of tech company listings on Hong Kong Exchanges and Clearing; and a wave of insurance companies going public in India (BSE Ltd and NSE India).

- In the EMEA region, there was a 53.4% and 69.7% increase in the number of new IPO listings and capital raised through IPOs. Over 80% of the exchanges in the region recorded an increase in the number of IPOs on 2016. LSE Group accounted for the largest share of new listings (38.1%) in the region despite ongoing uncertainty due to Brexit, followed by the Nasdaq Nordic exchanges with 86 new listings in 2017 (23.7% of new listings in the region).

- Volumes traded of single stock options, which account for 77% of single stock derivatives, increased by 4.8% on 2016, driven by a 3.6% increase in the Americas where over 80% of the trading takes place. The Asia-Pacific saw a significant 26.6% increase in volumes traded, while only the EMEA region experienced a decline in volume traded (down 2.4%) on 2016.

- Stock index options volumes traded increased by 22.6% on 2016. In the Asia-Pacific region, where over 65% of the trading takes place, volumes traded were up 34.3% on 2016. In the Americas volumes traded were up 12.7%, while the EMEA region experienced a 3.2% decline in volumes traded.

- In a year when several key central bank interest rate decisions were scheduled to take place across various markets, it was unsurprising to notice an uptick in volumes of interest rate futures traded (up 11.3%), with increases in all regions (Americas up 8.4%, Asia-Pacific up 10.3% and EMEA up 17.9% on 2016). Volumes traded of interest rate options which account for about 18% of interest rate derivatives were also up 17.6% on 2016.

- While commodity futures continued to be the most actively traded contract type, for the first time in the five-year period under review, there was a year-on-year decline in volumes traded in 2017 (down 15.6%). This decline was entirely driven by the 26% decline in the Asia-Pacific region where over 60% of the trading takes place. The Americas and EMEA saw number of contracts traded increase by 6.8% and 7.2% on 2016. Commodity options, which account for a very small share of the commodity derivatives (3.9%), saw volumes increase by 0.7% on 2016.

- Single stock futures volumes traded were up 19.4% on 2016.

- Number of stock index futures (which account for about 42% of stock index derivatives volumes) contracts traded were down 5.7% on 2016.

- Currency futures, which account for 70.5% of the currency derivatives contracts traded, saw volumes increase by 25.2% and the currency options volumes traded fell by 11.6% on 2016.

You can read the full report here.

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About the World Federation of Exchanges (WFE):

Established in 1961, the WFE is the global industry association for exchanges and clearing houses. Headquartered in London, it represents over 200 market infrastructure providers, including standalone CCPs that are not part of exchange groups. Of our members, 37% are in Asia-Pacific, 43% in EMEA and 20% in the Americas. WFE exchanges are home to nearly 45,000 listed companies, and the market capitalisation of these entities is over $82.5 trillion; around $81.8 trillion (EOB) in trading annually passes through the infrastructures WFE members safeguard (at end 2017).

The WFE is the definitive source for exchange-traded statistics, and publishes over 350 market data indicators. Its statistics database stretches back more than 40 years, and provides information and insight into developments on global exchanges.

The WFE works with standard-setters, policy makers, regulators and government organisations around the world to support and promote the development of fair, transparent, stable and efficient markets. The WFE shares regulatory authorities' goals of ensuring the safety and soundness of the global financial system, which is critical to enhancing investor and consumer confidence, and promoting economic growth.

For more information, please contact:

Anna Watson

Head of Communications, The World Federation of Exchanges

Email: This email address is being protected from spambots. You need JavaScript enabled to view it.

Phone: +44 20 7151 4137 / +44 7850 287 685

Twitter: @TheWFE