The WFE is the association of 52 regulated exchanges around the world. We develop and promote standards in markets.

Statistics Definitions

The Federation’s member exchanges have reached a general agreement on the following statistical notions, and they strictly comply with the definitions below.

These definitions and examples are intended to help readers to understand the statistics and how they are compiled.

Note on exchange groupings :

• Statistics of NYSE Euronext are not consolidated and are presented in three different groups :

      - NYSE Euronext (US) mainly includes the New York Stock Exchange and NYSE Arca

      - NYSE Euronext (Europe) is the operator of Amsterdam, Brussels, Lisbon and Paris exchanges

      - NYSE LIFFE is the operator of the NYSE Euronext's derivatives markets.

• BME (Spanish Exchanges) is the holding company of Barcelona, Bilbao, Madrid and Valencia exchanges.
• Statistics of NASDAQ OMX are not consolidated and are presented in two different groups :

      - NASDAQ OMX operating in the USA

      - NASDAQ OMX Nordic Exchange which includes the Copenhagen, Helsinki, Iceland, Stockholm, Tallinn, Riga and

         Vilnius Stock Exchanges. 

The complete list of definitions and examples are available below.

 

• Number of new bonds listed

  This table presents the number of new bonds listed during a given year issued by the different categories of issuers, and split into domestic public bonds, domestic private bonds, and foreign bonds (see definitions of the categories above).

• Number of trades in bonds

  The total number of trades in bonds represents all trades which have taken place on the exchange during the period. The number is single counted.

   As WFE does for the number of trades in equity shares, data are broken down according to the type facility / means used to execute the trading operation (see definitions above) :

  • trades effected through the electronic order book
  • negotiated deals
• Domestic market capitalization

  The market capitalization of a stock exchange is the total number of issued shares of domestic companies, including their several classes, multiplied by their respective prices at a given time. This figure reflects the comprehensive value of the market at that time.

  The market capitalization figures include:               

  -  shares of domestic companies ;

  -  shares of foreign companies which are exclusively listed on an exchange, i.e. the foreign company is not quoted on any other exchange

  -  common and preferred shares of domestic companies

  -  shares without voting rights

  The market capitalization figures exclude:               

            - collective investment funds ;

            - rights, warrants, ETFs, convertible instruments ;

            - options, futures ;

  -  foreign listed shares other than exclusively listed ones ;

            - companies whose only business goal is to hold shares of other listed companies

  - companies admitted to trading (companies admitted to trading are companies whose shares are traded at the exchange but not listed at the exchange) 

• Market capitalization of newly listed domestic shares and delistings

  The market capitalization of newly listed domestic shares is the total number of new shares issued multiplied by their value on the first day of quotation.

  The market capitalization of delisted domestic shares is the total number of these shares multiplied by their value on the last day of quotation.

• Number of listed companies

  Number of companies which have shares listed on an exchange at the end of the period, split into domestic and foreign, excluding investment funds and unit trusts. A company with several classes of shares is counted just once. Only companies admitted to listing are included.

  Domestic / Foreign Company

  A company is considered domestic when it is incorporated in the same country as where the exchange is located. A company is considered foreign when it is incorporated in a country other than that where the exchange is located.

• Number of newly listed and delisted companies

  The number of newly listed companies is the number of companies which list shares for the first time on a stock exchange. Only companies admitted to listing are included.

  The number of delisted companies is the number of companies removed from listing and trading.

• Value of share trading

  The value of share trading is the total number of shares traded multiplied by their respective matching prices. The table distinguishes trading value of domestic and foreign shares. Figures are single counted (only one side of the transaction is considered). Companies admitted to listing and admitted to trading are included in the data.

  In order to achieve a more complete view of market activity, share trading value is split into two main categories of trades according to the facility / means used to execute the trading operation :

  • Trades effected through the Electronic Order Book

  These trades represent the transfer of ownership effected automatically through the exchange’s electronic order book where orders placed by trading members are usually exposed to all market users and automatically matched according to precise rules set up by the exchange, generally on a price/time priority basis.

  • Negotiated deals

  These trades represent the transfer of ownership effected through a bilateral negotiation and involving at least one exchange’s member intermediary (trades between two intermediaries or between an intermediary and a customer). These trades may not be exposed to the market until after the trade is completed. They can be executed in a number of ways, including special trading platforms, telephone or other structures, and are reported by the intermediary to the exchange’s authorities. They can be executed and/or reported on systems operated by the exchange. To be included in the statistical reporting, this activity must generate revenues for the exchange.

  • Total share turnover is composed of electronic order book and negotiated deals.
• Number of trading days, average daily turnover, and average value of trades

  The number of trading days is simply the total number of days during which market operations were conducted during the period.

  The average daily turnover is calculated by dividing the total value of share trading by the number of trading days during the year.

  The average value of trades during a given year is calculated by dividing the total value of share trading by the total number of trades in equity shares.

• Number of trades in equity shares and number of shares traded

  The number of trades represents the actual number of transactions which have occurred during the period on the relevant exchange. The number is single counted (i.e., includes one side of the transaction only). Companies admitted to listing and admitted to trading are included in the data.

  In order to generate a more complete information, a split distinguishes two main categories of trades according to the facility / means used to execute the trade (see definitions in Valur of share trading) :

  • Trades effected through the electronic order book
  • Negotiated deals

  The total number of shares traded includes domestic and foreign shares. The number is single counted.

• Turnover velocity

  The turnover velocity is the ratio between the turnover of domestic shares and their market capitalization. The value is annualized by multiplying the monthly moving average by 12, according to the following formula :

   

  Monthly Domestic Share Turnover

  __________________________             *12

  Month-end Domestic Market Capitalization

   

  Only domestic shares are used in order to be consistent.

  Turnover velocity is calculated in 2 steps :

  - step 1 : we first calculate for each month the annualized ratio between the domestic share turnover and the domestic market capitalization, multiplied by 12 ;

  - step 2 : then, we add together, using a moving average methodology, the percentage ratios obtained in step 1, divided by 12.

• Market Concentration of domestic market capitalization and turnover in shares

  This information is given in percentage.

  Market concentration shows the part represented by 5% of the most heavily capitalized domestic companies and 5% of the most traded domestic shares compared to domestic market capitalization and share trading value, respectively.

  It also indicates the part represented by the 10 most capitalized domestic companies and the 10 most traded ones compared to domestic market capitalization and share trading value, respectively.

• Investment Flows - number of new companies listed

  Definition of number of new companies listed through an IPO

   The number of companies, split between domestic and foreign, whose shares were admitted to listing during the period through an offer of subscription and/or sales of shares (IPO). A company with several classes of shares is just counted once. Only companies admitted to listing are included in the data.

  Definition of number of other new companies listed

   The number of companies, split between domestic and foreign, whose shares were admitted to listing during the period through a procedure different from an IPO (e.g. splits, mergers, or having already floated shares). A company with several classes of shares is just counted once.

  Only companies admitted to listing are included in the data.

• Investment flows - new capital raised by shares

  The aggregated value of money raised on the primary market with offer of domestic shares (already issued or newly issued) in the period. Primary market operations, representing new funds for companies or proving money to former shareholders, are placed through public offers or via underwriters/banks. The figure is calculated by multiplying the number of shares that were placed by the offer price. Only the companies admitted to listing are included. Companies admitted to listing in Exchange A and admitted to trading in Exchange B are not included in the statistics of exchange B.

   Figures are shown according to two different approaches:

  • According to the operation
  • According to the status of the company

   1.   According to the operation

   • Value of newly issued shares (capital increase) represents the amount of money raised from shares issued through a capital increase, by both newly listed companies and already listed companies.

   • Value of already issued shares (Sale) represents the amount of money raised from public/secondary offers through a sale of already issued shares, by both newly listed companies and already listed companies.

   2.   According to the status of the company

   • Value of newly listed companies (IPO) represents the amount of money raised by companies newly admitted to listing through an IPO (through both subscription of newly issued shares and sale of already issued shares).

   • Value of already listed companies represents the amount of money raised by companies

  already listed (through both capital increases and public/secondary offers of already listed

  companies).

   It is possible that an IPO may list a combination of new shares and already issued shares.

• Securitized Derivatives

  A securitized derivatives product is a tradable financial instrument designed to meet specific investor needs and to respond to different investment strategies, by incorporating special, non-standard features.

  These products are in general used for capital protection, hedging against exposure to national or foreign equities, indices variations, commodity and currencies prices, arbitrage strategies, directional trading, etc. Each securitized derivatives product has its own characteristics. They are generally issued by intermediaries different from the issuer of the underlying financial instruments.

   Securitized derivatives products include different types of instruments such as (but not limited to) covered warrants and certificates.

   • Covered warrants incorporate an option to buy or sell other financial instruments; according to their features, may be distinguished between plain vanilla (underlying represented by a single product) and structured/exotic (more complex products whose underlying is represented by a basket of products, and/or incorporating combinations of call and/or put and/or exotic options). The underlying assets can be represented by equities, bonds, indices, currencies and commodities. In most cases covered warrants lead to a cash settlement, without the physical delivery of the underlying financial instruments.

   • Certificates track the performance of an underlying asset, often with a leverage effect (those without leverage being defined “investment certificates”). They provide the investor the opportunity to spread risk with moderate capital and administration costs, thus making possible the investment in foreign or largely diversified assets.

    The table shows the number of securitized derivatives admitted to listing or trading at the end of the period, their trading value and total number of trades during the period.

• ETFs

  ETFs are portfolio investment products that are admitted to listing or trading on a regulated

  Exchange. An ETF provides investors with exposure to a diversified basket of shares or other

  financial instruments. ETFs aim to replicate the performance of a specific index; this index can be a blue chip, a regional, or a sector index. The index type is not just limited to shares and may include bond indexes and other types of sophisticated index. ETFs are traded in the same way as any other share. These instruments can be used by investors as a hedging tool or as an investment product.

  The table shows the number of ETFs admitted to listing or trading at the end of the period, their trading value and the total number of trades during the period.

• Investment Funds

  Investment funds include UCITS, listed unit trusts, closed-end funds, investment trusts. They are collective funds managed by an investment trust company (a company established with the purpose of investing in other companies) or a management team. UCITS, listed unit trusts, closed-end funds and investment trusts are all different forms of collective investment, depending on a country's legislation.

  The table also shows the number of investment funds admitted to listing or trading at the end of the period, their trading value and the total number of trades.

• Value of bonds listed

  Bonds are fixed-income financial instruments, issued by governments, local authorities and state-owned or private organizations. They may be listed or traded in one or several exchanges, and ensure predetermined levels of returns in the form of interest rate. Interest rates may remain fixed throughout the bond’s life or vary according to the bond’s terms of listing.

  Data represent the number of bonds listed multiplied by their price at year-end.

  Some exchanges publish a bond market value at a notional value (signaled in a footnote); the other bourses use the real market value.

• Number of bond issuers

  The total number of bond issuers represents the number of organizations which issued the fixed-income instruments listed on the exchange. These issuers are broken down into domestic private, public, and foreign entities.

  • Domestic private bonds include corporate bonds, bonds issued by domestic banks and financial institutions ;
  • Domestic public bonds include government state-owned organizations bonds and bills, state-related institutions whose instruments are guaranteed by the state, and municipal bonds ;
  • Foreign bonds listed on the exchange are issued by non-resident institutions : foreign governments, banks, financial institutions, supranational organizations (EIB, EBRD, World Bank, …). They also include eurobonds (bonds issued under a law of a state different from the one of the issuer and placed in a foreign country inside the euro zone).

  An issuer may list bonds with different maturities, but the total number of issuers is unchanged.

• Number of bonds listed

  This table presents the number of bonds listed by the different categories of issuers, and split into domestic public bonds, domestic private bonds, and foreign bonds (see definitions of the categories above). A single issuer may list many securities with different maturities.

• Value of bond trading

  The bond trading value is the total number of bonds traded multiplied by their respective matching prices. The table indicates the value of bond trading split into domestic private, domestic public and foreign bonds ( see definitions of the categories in Number of bonds issuers). As WFE doas for the value of share turnover, the value of bond trading is broken down into electronic order book trades and negotiated deals. Figures are single counted.

• Investment flows – money raised by bonds

  The table indicates the corresponding value of newly listed bonds on an exchange and includes also money raised in already listed bonds.

• Derivatives

  These definitions concern all derivatives tables :

  Number of contracts traded

   A contract is a standard unit of trading denoted by the number of shares or the amount of capital that may vary from class to class, or from product to product, as defined by an exchange.

  Notional Value

   The notional value of derivatives is the number of contracts traded multiplied by the contracts’ underlying value. The contracts’ underlying value is calculated by multiplying the market price of the underlying asset for each contract times the contract’s multiplier. It is an approximate measure of the underlying value of the number of contracts traded.

  Option Premium

  The option premium represents the money paid by buyers to writers of calls or put options.

  The premium turnover for each trade is computed by multiplying price by volume by lot size.

  Day premium turnover is the cumulative value of each trade.

   

  ·Stock options / futures

  A stock option/future is a standardized tradable contract that gives the owner the right to buy or sell a particular stock at a specified date in the future at a pre-determined price.

  ·Stock index options / futures

  A stock index option/future is an option/future whose underlying reference is determined by stock index prices.

  ·Short and long terms interest rates

  A short or long term interest rate option/future is a contract whose underlying reference is determined by the level of interest rates in the country.

  ·Commodity options / futures

  A commodity option/future is a contract whose underlying reference is determined by commodity prices. Options/futures commodity contracts can be based on a wide range of commodities from agricultural to mining products.

  ·Currency options / futures

  A currency option/future is a contract whose underlying reference is based on a currency. The most used currencies are the US dollar, the euro, and the Japanese yen.

• Broad stock market indexes

  Broad indexes are, in general, market capitalization-weighted, including a large sample of listed domestic companies, as the all-share or composite indexes. They are generally recalculated to adjust to capital operations and to modifications in the company composition of the index. The index can be market capitalization-weighted or free float based.

  When the index is a price index, it measures the pure change of share prices without taking into consideration returns from dividend pay-outs.

  When the index is a return index, it measures the total return of investments on the index shares, including reinvested dividends.

  Certain WFE member exchanges operate several markets, and report index performances on an individual basis.

• Blue chips indexes

  A blue chip index measures the price movements of a selected range of blue chips stocks, generally the most heavily capitalized and traded shares. Blue chips indexes often serve as underlyings for derivatives (options and futures). The index can be market capitalization-weighted or free float based.

   As with the broad stock market indexes, certain WFE member exchanges operate several markets, and choose to report index performances on individual basis.

• Price earning ratio, gross dividend yield, total return

  The PER is calculated by dividing the market capitalization by the total market earnings. It concerns stocks included in the main index of the stock exchange, when possible.

  The dividend yield is calculated by dividing the total dividends distributed by the domestic companies composing the main index (when possible) by the market capitalization.

  The total return is calculated by adding the annual stock price index performance and the gross dividend yield paid during a given year. When a stock exchange provides a return stock index, which includes the payment of dividends, the total return is equal to the stock index performance.

• Interest rates, commodity prices

  Short term interest rates are represented by the 3-month money market rate or Inter Bank Offered Interest Rate (IBOR) at year-end.

   Long term interest rates are represented by the yield on the current 10-year government bonds at year-end.

   The following commodities prices at year-end are shown :

  • oil brent
  • the West Texas International (WTI) oil price
  • gold London fixing.

   The sources for commodity prices are Bloomberg and the “Financial Times” newspaper.

• Stock markets' significance in the national economy

  These indicators compare the exchange’s market capitalization to the national gross domestic product (GDP), and the exchange’s investment flows-capital raised to the national gross fixed capital formation (GFCF).

  GDP and GFCF figures are taken from the International Monetary Fund’s statistics.