Futures volumes rise, while fixed income soars

The World Federation of Exchanges (WFE) today released the half-year trading figures for regulated markets worldwide. Strong growth was registered in the market capitalization of stock exchanges, a measure of the total value of listed companies. Exchange-traded futures and options registered higher volumes in most asset classes. The complete report may be viewed here:

Exchange-traded futures and options

The number of traded contracts in derivatives markets showed strong growth of 9.8%, especially in stock index options (23%) for the first six months of 2011 as compared to the first six months of 2010. Amongst the top 10 in equity derivatives, the National Stock Exchange of India had the highest increase (51%).

Fixed-income markets

Bond market trading on exchanges increased significantly, by 60% for the first six months of 2011 as compared to same period 2010. Growth in Europe Africa Middle East was sharpest (64%), followed by Asia-Pacific (39%), and Americas (4.5%).

Equity markets – values up, trading mixed

Over the past 12 months, the total value of equity market capitalization has grown 28% in USD terms worldwide. Contributing factors include the strong performance registered in broad indexes, especially in the second half of 2010. A weaker dollar and new companies going public plus secondary rights issues added to the gains.

The amount of capital raised for new businesses actually fell in the first half versus the previous year. Stock exchanges well reputed for raising capital for small and medium sized enterprises (SMEs) were among the world leaders, notably the TMX Group, the Warsaw Stock Exchange and the Shenzhen Stock Exchange.

The trading volume for equities at the WFE member exchanges was stable (-0.8%) for the first six months of 2011 compared to the first six months of 2010. Those results reveal diverging trends by region: specifically a decrease (9.3%) in equity trading in the Americas, which was offset by an increase in Asia-Pacific volumes (13.8%). Amongst the top 10 in value of share trading, the Korea Exchange showed the highest growth rate (21%) for the same period.

The Americas decrease is attributable to the U.S. members of WFE, which make up 91% of the total regional trading value and 45% of the WFE total. As compared to the same period in 2010, which included unusual volatility associated with the so-called “Flash Crash” in May 2010, the value of stock trading on U.S. exchanges was down 11.3%.

For viewing and free downloads of WFE monthly statistics, please visit http://www.world-exchanges.org/statistics

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