stronger turnover and increased trading volume for …...from october to december, turnover in...

Contact:

Thomas WulfSecretary General

EUSIPA - European Structured Investment Products Association

Phone: 0032(0) 2550 3415 Mobile: 0032(0) 475 251599

[email protected]

of 2

Press Release Brussels, 8 March 2018

Stronger turnover and increased trading volume for European leverage products Turnover on European structured product exchanges totals EUR 29.0 billion as 2017 closes / More listed products on offer

Turnover in exchange-traded investment and leverage products on Europe’s finan-cial markets were up at the end of the fourth quarter. Turnover stood at EUR 29.0 billion, an increase of 16.0 percent quarter on quarter and 3.0 percent on the fourth quarter of the previous year. This is one of the outcomes of an analysis by Derivative Partners AG of the latest market data collected by the European Structured Investment Products Association (EUSIPA) from its members.

The members of EUSIPA providing information for the market report are: Zertifikate Forum Austria (ZFA), Belgian Structured Investment Products Association (BELSIPA), Association Française des Produits Dérivés de Bourse (AFPDB), Deutscher Derivate Ver-band (DDV), Associazione Italiana Certificati e Prodotti di Investimento (ACEPI), Swedish Exchange-Traded Investment Products Association (SETIPA), Swiss Structured Products Association (SSPA) and the Netherlands Structured Investment Products Association (NEDSIPA).

Fourth-quarter turnover in investment products trading on European exchanges amount-ed to EUR 14.2 billion – 48.9 percent of the total. Exchange-based turnover surged 39.0 percent on the previous quarter, and rose 31.0 percent from the same period of 2016.

The substantial growth registered in investment certificates turnover was mainly due to the development of the Swedish market.

From October to December, turnover in leverage products (Warrants, Knock-Out War-rants, Factor Certificates, etc.) totalled EUR 14.8 billion, 51.1 percent of aggregate turn-over. Turnover was almost unchanged from the previous quarter and down 14.0 percent year on year.

At the end of December, exchanges located in EUSIPA member countries were offering 522,558 investment products and 1,182,213 leverage products. The listed products offering saw a slight increase of 1.0 percent quarter on quarter and a significant 18.0 percent increase year on year.

Banks issued 980,106 new investment and leverage products in the fourth quarter of the year. Compared with the period from July to September, there was a 4.0 percent increase in new issuance. On a year-on-year basis, issuance grew 9.0 percent. In total, 141,775 new investment products were launched, accounting for 14.5 percent of all new issues, and 838,331 new leverage products were listed, accounting for 85.5 per-cent of new issues.

At the end of the fourth quarter, in Austria, Belgium, Germany and Switzerland, the market volume of investment and leverage products recognised as securities totalled EUR 260.5 billion – up 2.0 percent on the previous quarter. Volume increased 1.0 percent year on year.

Contact:

Thomas WulfSecretary General

EUSIPA - European Structured Investment Products Association

Phone: 0032(0) 2550 3415 Mobile: 0032(0) 475 251599

[email protected]

of 2

At the end of December, the market volume of investment products amounted to EUR 225.7 billion, an increase of 2.0 percent on the previous quarter and 2.0 percent year on year.

The outstanding volume of leverage products totalled EUR 34.8 billion at the end of December, up 1.0 percent on the third quarter. In comparison with the figure recorded for the same period of 2016, outstanding volume dropped 6.0 percent.

About EUSIPAEUSIPA represents the interests of the European structured investment products busi-ness. Derivative instruments such as structured investment products and warrants are the focal point of its activities. EUSIPA makes efforts to create an attractive and fair regulatory framework for these financial products.

The umbrella association acts as a contact for politicians and the European Securities and Markets Authority (ESMA) in all questions concerning structured products. Whenever the need arises, the association is at hand to provide expert advice and opinions, thus playing an active role in the opinion process on the political level.

Greater protection for investors and more comprehensible and transparent products are important concerns for the association. Together with its members, it is actively engaged in promoting Europe-wide standards throughout the sector. These include clear product classification, standardised technical terms and a broad commitment among the member associations to abide by a code of practice for the sector.

The members of EUSIPA that provide the information for the market report are:

EUSIPA Market Report on structured investment productsQ4/2017

Contents

Highlights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

Quarterly overview . . . . . . . . . . . . . . . . . . . . . . . . . 3

Exchange turnover . . . . . . . . . . . . . . . . . . . . . . . . . 5

Outstanding volume . . . . . . . . . . . . . . . . . . . . . . . . 6

Number of new listings on exchange . . . . . . . . . . 7

Number of exchanged listed products . . . . . . . . . 8

Appendix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

EUROPEANSTRUCTURED INVESTMENT PRODUCTS ASSOCIATION

VERSION 06

EUROPEANSTRUCTURED INVESTMENT PRODUCTS ASSOCIATION

VERSION 06

2EUSIPA Market Report Q4/2017 www.eusipa.org

2

1 . Highlights

Exchange Turnover: Increasing turnover Investment ProductsOn year-to-year basis the overall exchange turnover increased to 29 bn EUR in the fourth quarter of 2017, which is a plus of 3% compared on a year-to-year basis (28 bn EUR in Q4/2016) . Investment Products accounted in Q4 2017 for a turnover of 14 .18 bn EUR (an increase of 31% versus Q4 2016 and 39% compared to Q3 2017 . The increases are largely attributable to the Swedish market .

Outstanding Volume: Slightly increasing volume year-to-yearThe Q4 2017 figures for the Austrian, Belgian, German¹ and Swiss¹ markets indicate globally a a total amount of 261 bn EUR, which is a small increase of 1% compared to the fourth quarter of 2016 . On a year-to-year basis the volume of investment products increased by 2% but remained largely stable compared to the previous quarter Q3 2017 . The volume in leverage products which always is significantly smaller compared to the volume of investment products, decreased by 6% compared with the previous year and slightly increased by 1% compared with preceding Q3 2017 .

Number of New Listings: Increasing issuance activityCompared to the third quarter of 2017 the number of new listings during Q4 2017 has risen slightly by 4% (980'106 products in Q4 2017 versus 942'105 products in Q3 2017) . Whereas 85% of all new listed products were issued in the leveraged product segment, investment products obtained a share of 15% . For leverage products, the number of new listings increased by 7% compared to the previous quarter and by 20% on a year-to-year basis . For investment products, the number of new listings decreased by 12% compared to the previous quarter and 30% compared to the equivalent last year quarter, with the last figure being attributable largely to the German market .

Number of Products: Higher number of leverage productsAt the end of 2017 a total of 1'704'771 products were listed in EUSIPA member countries, a slightly increase of 1% compared to the third quarter of 2017 and by 18% compared on a year-to-year basis . Measured on a year-to-year basis the number of listed leverage products increased by 33% while the number of listed investment products decreased by 6% .

1 The German figures are sourced in from the 16 issuers assembled under the roof of Deutsche Derivate Verband (DDV) and entail assets from the sales of listed note-based structured retail products to customers based in Germany. The 16 issuers cover more than 90% of the German market in these products.2 The Swiss figures are sourced in from the Swiss National Bank and represent all assets in listed note-based structured retail products held in Swiss depots of issuers domiciled in Switzerland. The figures include therefore, to a small extent, also assets from product sales of these issuers outside Switzerland. The Swiss National Bank has extended the circle of the reportable institutions for the statistics of the securities held in bank's client deposits. The survey group consists now also of institutions with a special field of business. In case of such institutions with a special field of business and especially for deposits which are stored centrally there are only securities included that are not already stored at another reportable bank and reported by it.


3

2 . Quarterly overview (Q4/2017)

Austria Belgium France Germany Italy Netherlands Sweden1 Switzerland2 EUSIPA

Exchange Turnover (Mio. EUR)1 Investment Products 123 949 83 4'905 3'177 10 2'720 2'217 14'184

11 Capital Protected n/a n/a 0 61 n/a 0 3 31 9512 Yield-Enhancement n/a n/a 57 2'657 n/a 6 1 838 3'55813 Participation n/a n/a 26 2'154 n/a 4 2'689 1'320 6'193

199 Various n/a n/a 0 34 n/a 0 27 28 892 Leverage Products 8 18 935 5'097 3'839 1'308 2'259 1'383 14'846

21 Without Knock-Out n/a n/a 203 1'369 n/a 23 37 n/a 1'63322 With Knock-Out n/a n/a 587 3'002 n/a 1'283 980 n/a 5'85323 Constant Leverage n/a n/a 145 725 n/a 1 1'241 n/a 2'112

Various n/a n/a 0 n/a n/a 0 0 n/a 0Total 131 967 1'018 10'002 7'015 1'318 4'979 3'600 29'031Total change - ∆ in % to Q4/163 1 21 -10 -6 16 1 9 2 3Total change - ∆ in % to Q3/174 30 48 -2 10 5 14 56 13 16

Outstanding Volume (Mio. EUR)1 Investment Products 12'535 14'372 n/a 61'218 n/a n/a n/a 137'565 225'690

11 Capital Protected n/a n/a n/a 22'973 n/a n/a n/a 39'394 62'36712 Yield-Enhancement n/a n/a n/a 26'757 n/a n/a n/a 51'393 78'15013 Participation n/a n/a n/a 5'357 n/a n/a n/a 45'308 50'665

199 Various n/a n/a n/a 6'130 n/a n/a n/a 1'470 7'6002 Leverage Products 165 4 n/a 2'186 n/a n/a n/a 32'478 34'833

21 Without Knock-Out n/a n/a n/a 781 n/a n/a n/a n/a 78122 With Knock-Out n/a n/a n/a 1'019 n/a n/a n/a n/a 1'01923 Constant Leverage n/a n/a n/a 386 n/a n/a n/a n/a 386

Various n/a n/a n/a n/a n/a n/a n/a n/a 0Total 12'700 14'376 n/a 63'403 n/a n/a n/a 170'043 260'522Total change - ∆ in % to Q4/163 25 4 n/a 3 n/a n/a n/a -2 1Total change - ∆ in % to Q3/174 5 1 n/a -1 n/a n/a n/a 2 2

1 All data are retroactive adjusted for Q1/2017 to Q4/2017 due to NGM stock exchange system migration.2 Please note that the product category 'Investment Products with Reference Entities' exists only in Switzerland. Values for this category are therefore shown as 'Various Investment Products'.3 Field indicates per cent change between Q4/2017 and equivalent last year quarter Q4/2016.4 Field indicates per cent change between reporting quarter Q4/2017 and previous quarter Q3/2017.

Source: Country Associations, Derivative Partners


4

2 . Quarterly overview (Q4/2017)

Austria Belgium France Germany Italy Netherlands Sweden1 Switzerland2 EUSIPA

Number of New Listings on Exchange1 Investment Products 344 74 532 137'336 525 29 22 2'913 141'775

11 Capital Protected n/a n/a 0 24 n/a 5 0 28 5712 Yield-Enhancement n/a n/a 531 68'308 n/a 22 9 2'690 71'56013 Participation n/a n/a 1 68'925 n/a 2 9 190 69'127

199 Various n/a n/a 0 79 n/a 0 4 5 882 Leverage Products 181 459 22'246 790'284 4'497 9'257 5'126 6'281 838'331

21 Without Knock-Out 106 n/a 7'283 234'412 n/a 82 1'478 n/a 243'36122 With Knock-Out 75 n/a 14'947 554'239 n/a 9'165 3'467 n/a 581'89323 Constant Leverage 0 n/a 16 1'633 n/a 10 181 n/a 1'840

Various 0 n/a 0 n/a n/a 0 0 n/a 0Total 525 533 22'778 927'620 5'022 9'286 5'148 9'194 980'106Total change - ∆ in % to Q4/163 -57 -1 0 9 92 28 -43 8 9Total change - ∆ in % to Q3/174 -43 58 18 3 431 11 -2 4 4

Number of Exchange Listed Products1 Investment Products 3'436 1'395 1'462 500'196 2'868 189 609 12'403 522'558

11 Capital Protected n/a n/a 0 1'191 n/a 7 134 472 1'80412 Yield-Enhancement n/a n/a 1'323 277'114 n/a 81 82 9'714 288'31413 Participation n/a n/a 139 220'400 n/a 101 349 1'749 222'738

199 Various n/a n/a 0 1'491 n/a 0 44 468 2'0032 Leverage Products 4'678 940 38'366 1'080'293 5'886 19'825 12'974 19'251 1'182'213

21 Without Knock-Out 2'281 n/a 17'921 613'239 n/a 153 3'705 n/a 637'29922 With Knock-Out 2'397 n/a 19'658 454'492 n/a 19'449 6'052 n/a 502'04823 Constant Leverage 0 n/a 787 12'562 n/a 223 3'192 n/a 16'764

Various 0 n/a 0 n/a n/a 0 25 n/a 25Total 8'114 2'335 39'828 1'580'489 8'754 20'014 13'583 31'654 1'704'771Total change - ∆ in % to Q4/163 17 21 21 19 6 32 -33 8 18Total change - ∆ in % to Q3/174 -13 3 6 1 0 4 -7 -1 1

Source: Country Associations, Derivative Partners1 All data are retroactive adjusted for Q1/2017 to Q4/2017 due to NGM stock exchange system migration.2 Please note that the product category 'Investment Products with Reference Entities' exists only in Switzerland. Values for this category are therefore shown as 'Various Investment Products'.3 Field indicates per cent change between Q4/2017 and equivalent last year quarter Q4/2016.4 Field indicates per cent change between reporting quarter Q4/2017 and previous quarter Q3/2017.


1 Field indicates per cent change between Q4/2017 and equivalent last year quarter Q4/2016 .2 Field indicates per cent change between reporting quarter Q4/2017 and previous quarter Q3/2017 .3 All data are retroactive adjusted for Q1/2017 to Q4/2017 due to NGM stock exchange system migration .4 The extraordinary increase is due to trades in products with crypto currency underlyings reported by NASDAQ .

3 . Exchange turnover

Investment Productsin Mio . EUR

Austria*BelgiumFranceItalyNetherlandsSwedenSwitzerlandGermany

16'000

12'000

8'000

4'000

0


20'000

15'000

10'000

5'000

0∆% 4/161

1%21%26%63%

-44%2'466% 4

3%-14%31%

∆% 3/172

34%49%34%12%

-17%848% 4

20%11%39%

∆% 4/161

-3%38%-12%-6%2%

-49%0%2%

-14%

∆% 3/172

-12%20%-5%0%

14%-22%

3%9%0%

Leverage Productsin Mio . EUR


2016 Q4 2017 Q1 2017 Q2 2017 Q3 2017 Q4 Total 2017

Austria 122 152 142 92 123 509Belgium 786 993 934 637 949 3'513France 66 53 92 62 83 290Italy 1'944 2'993 3'672 2'845 3'177 12'687Netherlands 18 12 22 12 10 56Sweden3 106 103 154 287 2'720 3'264Switzerland 2'146 2'347 2'333 1'850 2'217 8'747Germany 5'679 5'761 5'314 4'413 4'905 20'393Total 10'867 12'414 12'663 10'198 14'184 49'460

2016 Q4 2017 Q1 2017 Q2 2017 Q3 2017 Q4 Total 2017

Austria 8 7 8 9 8 32Belgium 13 25 21 15 18 79France 1'060 1'049 1'120 980 935 4'084Italy 4'094 3'629 3'406 3'843 3'839 14'717Netherlands 1'288 1'446 1'311 1'147 1'308 5'212Sweden3 4'473 3'116 2'488 2'902 2'259 10'765Switzerland 1'384 1'376 1'437 1'348 1'383 5'544Germany 4'982 5'400 4'822 4'666 5'097 19'985Total 17'303 16'048 14'613 14'910 14'847 60'418


40'000

30'000

20'000

10'000

0


∆% 3/172

14%33%

7%1%1%

∆% 3/172

5%1%

-2%3%2%

4 . Outstanding volume

Leverage Productsin Mio . EUR

Investment Productsin Mio . EUR

2016 Q4 2017 Q1 2017 Q2 2017 Q3 2017 Q4

Austria 10'098 10'385 10'286 11'955 12'535Belgium 13'852 14'583 14'406 14'184 14'372Germany4 59'900 61'956 61'905 62'287 61'218Switzerland3 137'405 144'915 137'310 133'667 137'565Total 221'255 231'839 223'907 222'093 225'690

2016 Q4 2017 Q1 2017 Q2 2017 Q3 2017 Q4

Austria 102 116 114 145 165Belgium 3 3 2 3 4Germany4 1'700 1'899 1'810 2'052 2'186Switzerland3 35'322 35'596 33'775 32'251 32'478Total 37'127 37'613 35'701 34'451 34'833

∆% 4/161

24%4%2%0%2%

∆% 4/161

62%33%29%-8%-6%

250'000

200'000

150'000

100'000

50'000

0



1 Field indicates per cent change between Q4/2017 and equivalent last year quarter Q4/2016 .2 Field indicates per cent change between reporting quarter Q4/2017 and previous quarter Q3/2017 .3 The Swiss figures are sourced in from the Swiss National Bank and represent all assets in listed note-based structured retail products held in Swiss depots of issuers domiciled in Switzerland . The figures include therefore, to a small extent, also assets from product sales of these issuers outside Switzerland .4 The German figures are sourced in from the 16 issuers assembled under the roof of Deutsche Derivate Verband (DDV) and entail assets from the sales of listed note-based structured retail products to customers based in Germany .


850'000

800'000

750'000

700'000

650'000

600'000

550'000

500'000

450'000

400'000

Austria*FranceItalyNetherlandsSwedenSwitzerlandGermany

2016 Q4 2017 Q1 2017 Q2 2017 Q3 2017 Q4 Total 2017

Austria 851 2'667 1'109 578 181 4'535Belgium 470 215 198 275 459 1'147France 22'254 24'103 29'371 19'037 22'246 94'757Italy 2'388 1'399 2'714 614 4'497 9'224Netherlands 7'253 9'065 11'236 8'325 9'257 37'883Sweden3 8'965 5'934 7'651 5'251 5'126 23'962Switzerland 6'244 6'585 6'489 6'183 6'281 25'538Germany 648'438 660'603 669'240 741'420 790'284 2'861'547Total 696'863 710'571 728'008 781'683 838'331 3'058'593

5 . Number of new listings on exchange

210'000

190'000

170'000

150'000

130'000

110'000

90'000

70'000


Investment Products Leverage Products

2016 Q4 2017 Q1 2017 Q2 2017 Q3 2017 Q4 Total 2017

Austria 366 2'101 815 342 344 3'602Belgium 71 66 75 62 74 277France 585 547 686 230 532 1'995Italy 233 489 611 332 525 1'957Netherlands 22 40 18 57 29 144Sweden3 17 11 26 21 22 80Switzerland 2'277 2'282 2'492 2'649 2'913 10'336Germany 198'825 183'577 141'849 156'729 137'336 619'491Total 202'396 189'113 146'572 160'422 141'775 637'882

∆% 4/161

-6%4%

-9%125%32%29%28%-31%-30%

∆% 4/161

-79%-2%0%

88%28%

-43%1%

22%20%

∆% 3/172

1%19%

131%58%

-49%5%

10%-12%-12%

∆% 3/172

-69%67%17%

632%11%-2%2%7%7%


1 Field indicates per cent change between Q4/2017 and equivalent last year quarter Q4/2016 .2 Field indicates per cent change between reporting quarter Q4/2017 and previous quarter Q3/2017 .3 All data are retroactive adjusted for Q1/2017 to Q4/2017 due to NGM stock exchange system migration.


1'200'000

1'100'000

1'000'000

900'000

800'000

700'000

600'000

500'000


6 . Number of exchange listed products

600'000

550'000

500'000

450'000

400'000

350'000


Investment Products Leverage Products

2016 Q4 2017 Q1 2017 Q2 2017 Q3 2017 Q4

Austria 2'457 4'147 4'314 3'953 3'436Belgium 1'232 1'373 1'395 1'397 1'395France 1'119 1'187 1'561 1'596 1'462Italy 2'606 2'718 2'827 2'860 2'868Netherlands 172 190 170 209 189Sweden3 720 649 628 634 609Switzerland 11'845 11'917 11'796 12'229 12'403Germany 535'846 562'602 539'027 542'641 500'196Total 555'997 584'783 561'718 565'519 522'558

2016 Q4 2017 Q1 2017 Q2 2017 Q3 2017 Q4

Austria 4'501 6'179 5'970 5'380 4'678Belgium 690 786 850 868 940France 31'926 32'253 35'242 35'956 38'366Italy 5'643 5'677 6'602 5'908 5'886Netherlands 15'034 17'017 18'206 19'019 19'825Sweden3 19'405 13'871 14'695 13'909 12'974Switzerland 17'446 18'551 19'061 19'842 19'251Germany 795'373 850'622 919'895 1'018'161 1'080'293Total 890'018 944'956 1'020'521 1'119'043 1'182'213

∆% 4/161

40%13%31%10%10%

-15%5%

-7%-6%

∆% 4/161

4%36%20%

4%32%

-33%10%36%33%

∆% 3/172

-13%0%

-8%0%

-10%-4%1%

-8%-8%

∆% 3/172

-13%8%7%0%4%

-7%-3%6%6%


1 Field indicates per cent change between Q4/2017 and equivalent last year quarter Q4/2016 .2 Field indicates per cent change between reporting quarter Q4/2017 and previous quarter Q3/2017 .3 All data are retroactive adjusted for Q1/2017 to Q4/2017 due to NGM stock exchange system migration.


9

7. Appendix

Data sourcesEUSIPA Members Derivative Partners AG

Key date is 29 December 2017. The exchange rates for CHF/EUR and SEK/EUR are defined at the last trading day of each quarter.

ContactThomas Wulf | Secretary General EUSIPA - European Structured Investment Products Association

Bastion Tower Level 20 5, Place du Champ de Mars 1050 Brussels | Belgium

Phone: +32 2 550 34 15 Mobile: +32 475 25 15 99 [email protected] www.eusipa.org

The data is collected by Derivative Partners AG.

Patrick Walther | Managing Director Derivative Partners AG

Splügenstrasse 10 8002 Zurich | Switzerland Phone: +41 43 305 00 55 Fax: +41 43 305 05 31 [email protected]

DisclaimerEUSIPA, the country associations and Derivative Partners do not guarantee the accuracy of this document. We hereby authorize reprints of and quotes with attributions from this document.

Further information about Structured Investment Products is provided by the country associations on their websites:

AustriaZertifikate Forum Austria (ZFA)www.zertifikateforum.at

FranceAssociation Française des Produits Dérivés de Bourse (AFPDB)www.afpdb.fr

GermanyDeutscher Derivate Verband (DDV)www.derivateverband.de

ItalyAssociazione Italiana Certificati e prodotti di Investimento (ACEPI)www.acepi.it

NetherlandsNetherlands Structured Investment Products Association (NEDSIPA)www.nedsipa.nl

SwedenSwedish exchange-traded investment products association (SETIPA)www.setipa.se

SwitzerlandSwiss Structured Products Association (SSPA)www.svsp-verband.ch

BelgiumBelgian Structured Investment Products Association (BELSIPA)www.belsipa.be BELSIPA

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