WarrantsExchange in Frankfurt further expands market share

Frankfurt Stock Exchange

Trading activity 17 percent higher than in 2016

Frankfurt Stock Exchange’s market share in structured products in Germany increased again in 2017, the Deutsche Börse announced earlier today. Its share was slightly higher than the previous year’s level both in terms of turnover (36.0 percent) and on the basis of executed trades (45.5 percent). Overall, around 2.5 million client orders were executed on the Frankfurt WarrantsExchange in the anniversary year 2017, an increase of 17 percent over the previous year. The total volume remained virtually unchanged at €14.5 billion.

The tool-box “Zertifigurator”, which was introduced on our website in the first half of 2017, accommodates the desire for individualised investments. It shows how important the topic of innovation is for us as a stock exchange operator,” said Florian Claus, member of the Executive Board of Börse Frankfurt Zertifikate AG. “In 2017, our issuers proved yet again that private investors can invest in hot topics such as bitcoin within a short period of time through the products listed in Frankfurt. We are delighted that we have been able to further gather investors’ and traders’ interest in structured products and win them for trading on the Frankfurt’s WarrantsExchange.

With a share of 88 percent of all orders, leveraged products remained by far the most popular certificates. Volume in this segment rose from €7.6 billion to round about €8.1 billion. Turnover in investment products, by contrast, fell by 10.7 percent to approx. €6.5 billion. The average order size decreased from €7,017 to €5,886 due to the high share of orders in leveraged products. At the same time, more and more orders from international participants are being executed: the share increased significantly again, rising by 41 percent. Almost one in three orders thus comes from abroad.

With the launch of the EU Markets in Financial Instruments Directive MiFID II, trading has experienced further changes, as Börse Frankfurt Zertifikate AG Executive Board member Simone Kahnt-Eckner explained:

MiFID II has made trading structured products even more transparent. The significant amount of additional information, such as the publication of the target market, allows investors to better identify whether a product is suitable for them. In addition, the explicit and implicit costs associated with a securities transaction and their impact on annual yield are already displayed before order execution. Together with our ‘no fee’ campaign for orders under €1,000, this further reduces the barriers to entry into the world of structured products.

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