New statistics quantify record-high equities and derivatives volumes in H1

The World Federation of Exchanges (WFE) has released the trading statistics for equities and derivatives in the first half of 2020 confirming record volumes for both.

Statistics published by the World Federation of Exchanges (WFE) have shown just how high trading volumes were in the first half of 2020 for equities and exchange traded derivatives (ETDs) with records set and huge upticks in comparison with the 2019 figures.

Compared with H2 of 2019 equity markets saw levels of value traded (49.7%) and volumes (47.1%) throughout the first half of 2020 as volatility stemming from the COVID-19 pandemic swept through the global markets.

Similarly, in the first half of this year, exchange traded derivatives volumes were up 23.4% in comparison with figures from H2 of 2019.

The equities and ETD volumes surged as market participants responded to the unprecedented market volatility that swept across the market during the global pandemic.

Exchange traded derivatives also reached a record of 21.72 billion contracts traded in H1 of 2020.

This pattern stretched across most contract types in all regions with futures contracts trading increasing significantly more than options trading.

In its report, the WFE praised the role of market infrastructures during the heights of the market volatility.

“Whatever the perspective, we see how market infrastructures played a critical role in sustaining local economies throughout the pandemic outbreak and afterwards, ensuring markets remained resilient, trusted, and efficient,” said the association. “Their role in the economic recovery will be fundamental.”

In June this year, the WFE published a set of guidelines aimed at improving processes for central clearing counterparties (CCPs) handling potential non-default losses (NDL).

The new procedures allow a more transparent and predictable process in how NDLs are allocated and handled in central clearing.