EUROPEAN EXCHANGES MARKET CAP DROPS NEARLY 50 PERCENT
Posted January 22, 2009
Despite the immediate indirect effects of the crisis, which started in unregulated private markets and had an inevitable impact on exchanges’ market capitalization, 747 million electronic order book (EOB) equity trades were done in 2008, which means a 22 percent increase compared to 2007. The value of these EOB equity trades on European exchanges was close to €12 trillion compared to €14.8 trillion for 2007, which means a decrease of 19 percent.
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Throughout 2008, the number of equity derivatives contracts went up to 2.266 billion which means a 26 percent increase compared to 2007. Bond derivatives reached 1.239 billion contracts during 2008.
During the month of December 2008, more than 47 million electronic order book (EOB) equity trades were done on FESE members with a value of €476 billion. This means a 25 percent decrease compared to the previous month.
The equity market capitalization of FESE member exchanges decreased to €6.2 trillion. 43 new companies were listed during the month of December in FESE members, 22 of which were listed through an IPO.
EOB ETFs trading volumes increased 63 percent year-on-year in December while securitized derivatives decreased by 18 percent from a year ago. EOB Bond trading value reached €26 billion last month, remaining stable compared to the previous month. The number of equity derivative contracts traded has decreased by 14 percent compared to November while bonds derivative contracts decreased by 18 percent in the same period.
During December 2008, the open interest for equity derivatives was close to 173 million, this means a 28 percent decrease compared to the previous month. The open interest for bond derivatives was close to 24 millions and decreased by 26 percent compared to November 2008.