Exchanges' 2009 figures highlight European equities slump

Several of Europe’s major stock exchanges have reported significant declines in equities trading volume and value for the full year of 2009 compared with 2008, but activity in exchange-traded funds bucked the general trend.
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Several of Europe’s major stock exchanges have reported significant declines in equities trading volume and value for the full year of 2009 compared with 2008, but activity in exchange-traded funds bucked the general trend.

German exchange group Deutsche Börse’s cash equities market reported total 2009 turnover of €1.14 trillion, a 50% drop from 2008’s €2.26 trillion.

Other exchanges experienced similar declines. Spanish exchange group Bolsas y Mercados Españoles (BME) saw its equity trading turnover fall 27.8% to €897.2 billion in 2009, and the number of trades slip by 14.4% to 31.6 million.

SIX Swiss Exchange’s equities turnover, including funds and exchange-traded structured funds, fell 46.6% to CHF 872.1 billion (€587.5 billion) in 2009, and the number of equities trades dropped 23.5% to 32.2 trillion.

The exchanges’ figures echo the trend across Europe. According to figures from data vendor Thomson Reuters, total equities trading turnover for the continent in 2009 was €7.56 trillion, a 68.5% drop from 2008’s €24.05 trillion. Trading volumes across Europe fell to 1.15 trillion trades, down 48.5% from 2008’s 2.23 trillion.

Although equity volumes and values were down, some exchanges reported growth in ETF trading. BME’s ETF trade volume in 2009, for example, was up 99% on 2008’s number to 50,789. While turnover in all its other segments were down in 2009 compared with 2008, SIX Swiss Exchange’s ETF turnover was up 28.1% to CHF 50.6 billion and ETF trade volume was up 59.8% to 464.4 billion trades.

It appears that some US exchanges may have fared better in 2009 than their European counterparts. BATS Exchange’s average daily matched volume was 1 billion shares in 2009, a 20% increase from 2008’s 830.6 million. BATS Europe, the exchange’s pan-European multilateral trading facility, ended 2009 with average daily value traded of €917 million, compared with €228 million in January 2009 alone. BATS Europe started trading on October 31 2008.

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