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 financial 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 Verband (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 amounted 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 Warrants, Factor Certificates, etc.) totalled EUR 14.8 billion, 51.1 percent of aggregate turnover. 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 percent 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 Wulf Secretary General EUSIPA - European Structured Investment Products Association Phone: 0032(0) 2550 3415 Mobile: 0032(0) 475 251599 wulf@eusipa.org Page 1 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 EUSIPA EUSIPA represents the interests of the European structured investment products business. 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: Contact: Thomas Wulf Secretary General EUSIPA - European Structured Investment Products Association Phone: 0032(0) 2550 3415 Mobile: 0032(0) 475 251599 wulf@eusipa.org Page 2 of 2
EUSIPA Market Report on structured investment products Q4/2017 Contents EUROPEAN STRUCTURED INVESTMENT PRODUCTS ASSOCIATION 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
1. Highlights Exchange Turnover: Increasing turnover Investment Products On 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 3 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-year The Q4 2017 figures for the Austrian, Belgian, German¹ and Swiss² markets indicate globally a a total amount of 261 bn EUR, which is a small increase of 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 compared with preceding Q3 2017. Number of New Listings: Increasing issuance activity Compared 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 2 on a year-to-year basis. For investment products, the number of new listings decreased by 12% compared to the previous quarter and 3 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 products At the end of 2017 a total of 1'704'771 products were listed in EUSIPA member countries, a slightly increase of 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 9 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. EUSIPA Market Report Q4/2017 2
2. Quarterly overview (Q4/2017) Austria Belgium France Germany Italy Netherlands Sweden 1 Switzerland 2 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 95 12 Yield-Enhancement n/a n/a 57 2'657 n/a 6 1 838 3'558 13 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 89 2 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 1'633 22 With Knock-Out n/a n/a 587 3'002 n/a 1'283 980 n/a 5'853 23 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 0 Total 131 967 1'018 10'002 7'015 1'318 4'979 3'600 29'031 Total change - in % to Q4/16 3 1 21-10 -6 16 1 9 2 3 Total change - in % to Q3/17 4 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 62'367 12 Yield-Enhancement n/a n/a n/a 26'757 n/a n/a n/a 51'393 78'150 13 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 7'600 2 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 781 22 With Knock-Out n/a n/a n/a 1'019 n/a n/a n/a n/a 1'019 23 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 0 Total 12'700 14'376 n/a 63'403 n/a n/a n/a 170'043 260'522 Total change - in % to Q4/16 3 25 4 n/a 3 n/a n/a n/a -2 1 Total change - in % to Q3/17 4 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 EUSIPA Market Report Q4/2017 3
2. Quarterly overview (Q4/2017) Austria Belgium France Germany Italy Netherlands Sweden 1 Switzerland 2 EUSIPA Number of New Listings on Exchange 1 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 57 12 Yield-Enhancement n/a n/a 531 68'308 n/a 22 9 2'690 71'560 13 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 88 2 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 243'361 22 With Knock-Out 75 n/a 14'947 554'239 n/a 9'165 3'467 n/a 581'893 23 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 0 Total 525 533 22'778 927'620 5'022 9'286 5'148 9'194 980'106 Total change - in % to Q4/16 3-57 -1 0 9 92 28-43 8 9 Total change - in % to Q3/17 4-43 58 18 3 431 11-2 4 4 Number of Exchange Listed Products 1 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 1'804 12 Yield-Enhancement n/a n/a 1'323 277'114 n/a 81 82 9'714 288'314 13 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 2'003 2 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 637'299 22 With Knock-Out 2'397 n/a 19'658 454'492 n/a 19'449 6'052 n/a 502'048 23 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 25 Total 8'114 2'335 39'828 1'580'489 8'754 20'014 13'583 31'654 1'704'771 Total change - in % to Q4/16 3 17 21 21 19 6 32-33 8 18 Total change - in % to Q3/17 4-13 3 6 1 0 4-7 -1 1 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 EUSIPA Market Report Q4/2017 4
3. Exchange turnover Investment Products in Mio. EUR Leverage Products in Mio. EUR 16'000 20'000 12'000 15'000 8'000 10'000 4'000 5'000 0 2016 Q4 2017 Q1 2017 Q2 2017 Q3 2017 Q4 Total 2017 0 2016 Q4 2017 Q1 2017 Q2 2017 Q3 2017 Q4 Total 2017 Austria 122 152 142 92 123 509 Belgium 786 993 934 637 949 3'513 France 66 53 92 62 83 290 Italy 1'944 2'993 3'672 2'845 3'177 12'687 Netherlands 18 12 22 12 10 56 Sweden 3 106 103 154 287 2'720 3'264 Switzerland 2'146 2'347 2'333 1'850 2'217 8'747 Germany 5'679 5'761 5'314 4'413 4'905 20'393 Total 10'867 12'414 12'663 10'198 14'184 49'460 2 26% 63% -44% 2'466% 4 3% -14% 3 34% 49% 34% 12% -17% 848% 4 2 1 39% Austria 8 7 8 9 8 32 Belgium 13 25 21 15 18 79 France 1'060 1'049 1'120 980 935 4'084 Italy 4'094 3'629 3'406 3'843 3'839 14'717 Netherlands 1'288 1'446 1'311 1'147 1'308 5'212 Sweden 3 4'473 3'116 2'488 2'902 2'259 10'765 Switzerland 1'384 1'376 1'437 1'348 1'383 5'544 Germany 4'982 5'400 4'822 4'666 5'097 19'985 Total 17'303 16'048 14'613 14'910 14'847 60'418-3% 38% -12% -6% 2% -49% 2% -14% -12% 2-5% 14% -22% 3% 9% 1 Field indicates per cent change between Q4/2017 and equivalent last year quarter Q4/2016. 2 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. EUSIPA Market Report Q4/2017 5
4. Outstanding volume Investment Products in Mio. EUR Leverage Products in Mio. EUR 250'000 200'000 150'000 100'000 40'000 30'000 20'000 50'000 10'000 0 2016 Q4 2017 Q1 2017 Q2 2017 Q3 2017 Q4 Austria 10'098 10'385 10'286 11'955 12'535 Belgium 13'852 14'583 14'406 14'184 14'372 Germany 4 59'900 61'956 61'905 62'287 61'218 Switzerland 3 137'405 144'915 137'310 133'667 137'565 Total 221'255 231'839 223'907 222'093 225'690 24% 5% 4% 2% -2% 3% 2% 2% 0 2016 Q4 2017 Q1 2017 Q2 2017 Q3 2017 Q4 Austria 102 116 114 145 165 Belgium 3 3 2 3 4 Germany 4 1'700 1'899 1'810 2'052 2'186 Switzerland 3 35'322 35'596 33'775 32'251 32'478 Total 37'127 37'613 35'701 34'451 34'833 62% 33% 29% -8% -6% 14% 33% 7% 1 Field indicates per cent change between Q4/2017 and equivalent last year quarter Q4/2016. 2 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. EUSIPA Market Report Q4/2017 6
5. Number of new listings on exchange Investment Products Leverage Products 210'000 850'000 190'000 170'000 150'000 800'000 750'000 700'000 650'000 130'000 600'000 110'000 90'000 550'000 500'000 450'000 70'000 2016 Q4 2017 Q1 2017 Q2 2017 Q3 2017 Q4 Total 2017 400'000 2016 Q4 2017 Q1 2017 Q2 2017 Q3 2017 Q4 Total 2017 Austria 366 2'101 815 342 344 3'602 Belgium 71 66 75 62 74 277 France 585 547 686 230 532 1'995 Italy 233 489 611 332 525 1'957 Netherlands 22 40 18 57 29 144 Sweden 3 17 11 26 21 22 80 Switzerland 2'277 2'282 2'492 2'649 2'913 10'336 Germany 198'825 183'577 141'849 156'729 137'336 619'491 Total 202'396 189'113 146'572 160'422 141'775 637'882-6% 4% -9% 125% 32% 29% 28% -3-3 19% 13 58% -49% 5% 1-12% -12% Austria 851 2'667 1'109 578 181 4'535 Belgium 470 215 198 275 459 1'147 France 22'254 24'103 29'371 19'037 22'246 94'757 Italy 2'388 1'399 2'714 614 4'497 9'224 Netherlands 7'253 9'065 11'236 8'325 9'257 37'883 Sweden 3 8'965 5'934 7'651 5'251 5'126 23'962 Switzerland 6'244 6'585 6'489 6'183 6'281 25'538 Germany 648'438 660'603 669'240 741'420 790'284 2'861'547 Total 696'863 710'571 728'008 781'683 838'331 3'058'593-79% -2% 88% 28% -43% 22% 2-69% 67% 17% 632% 1-2% 2% 7% 7% 1 Field indicates per cent change between Q4/2017 and equivalent last year quarter Q4/2016. 2 3 All data are retroactive adjusted for Q1/2017 to Q4/2017 due to NGM stock exchange system migration. EUSIPA Market Report Q4/2017 7
6. Number of exchange listed products Investment Products Leverage Products 600'000 1'200'000 550'000 1'100'000 500'000 1'000'000 900'000 450'000 800'000 400'000 700'000 600'000 350'000 2016 Q4 2017 Q1 2017 Q2 2017 Q3 2017 Q4 500'000 2016 Q4 2017 Q1 2017 Q2 2017 Q3 2017 Q4 Austria 2'457 4'147 4'314 3'953 3'436 Belgium 1'232 1'373 1'395 1'397 1'395 France 1'119 1'187 1'561 1'596 1'462 Italy 2'606 2'718 2'827 2'860 2'868 Netherlands 172 190 170 209 189 Sweden 3 720 649 628 634 609 Switzerland 11'845 11'917 11'796 12'229 12'403 Germany 535'846 562'602 539'027 542'641 500'196 Total 555'997 584'783 561'718 565'519 522'558 4 13% 3 1 1-15% 5% -7% -6% -13% -8% -1-4% -8% -8% Austria 4'501 6'179 5'970 5'380 4'678 Belgium 690 786 850 868 940 France 31'926 32'253 35'242 35'956 38'366 Italy 5'643 5'677 6'602 5'908 5'886 Netherlands 15'034 17'017 18'206 19'019 19'825 Sweden 3 19'405 13'871 14'695 13'909 12'974 Switzerland 17'446 18'551 19'061 19'842 19'251 Germany 795'373 850'622 919'895 1'018'161 1'080'293 Total 890'018 944'956 1'020'521 1'119'043 1'182'213 4% 36% 2 4% 32% -33% 1 36% 33% -13% 8% 7% 4% -7% -3% 6% 6% 1 Field indicates per cent change between Q4/2017 and equivalent last year quarter Q4/2016. 2 3 All data are retroactive adjusted for Q1/2017 to Q4/2017 due to NGM stock exchange system migration. EUSIPA Market Report Q4/2017 8
7. Appendix Data sources EUSIPA 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. Contact Thomas 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 wulf@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 patrick.walther@derivativepartners.com Disclaimer EUSIPA, 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: Austria Zertifikate Forum Austria (ZFA) www.zertifikateforum.at France Association Française des Produits Dérivés de Bourse (AFPDB) www.afpdb.fr Germany Deutscher Derivate Verband (DDV) www.derivateverband.de Italy Associazione Italiana Certificati e prodotti di Investimento (ACEPI) www.acepi.it Netherlands Netherlands Structured Investment Products Association (NEDSIPA) www.nedsipa.nl Sweden Swedish exchange-traded investment products association (SETIPA) www.setipa.se Switzerland Swiss Structured Products Association (SSPA) www.svsp-verband.ch Belgium Belgian Structured Investment Products Association (BELSIPA) www.belsipa.be BELSIPA Building transparency EUSIPA Market Report Q4/2017 9