Increase of value creation of 24.1% in Q2 2017 relative to the previous year – First half-year 2017: growth amounted to 16.2% compared with first half-year 2016
Turnover for Swiss structured products amounted to CHF 70.7 billion in Q2 2017. Value creation of the major SSPA members increased with 24.1% significantly compared with prior-year quarter. Over the entire first half-year 2017, growth amounted to 16.2% compared with first half-year 2016. Demand for yield-optimisation products remained strong, accounting for about 58% of the total. 49% of all products are equity-based, followed by foreign exchange at 34% (decrease of 11 percentage points relative to the previous year). An increase however can be observed in turnover in the fixed income segment. Non-listed products constitute about 71% of the turnover.
Zurich, 21st July 2017. Structured product value creation statistics drawn up by the Boston Consulting Group take account of listed as well as unlisted products created in or for Switzerland that are sold nationally as well as internationally. SSPA members Barclays Capital, Banque Cantonale Vaudoise, Credit Suisse, Commerzbank, Goldman Sachs, Julius Baer, Leonteq, Notenstein La Roche, UBS, Vontobel as well as Zurich Cantonal Bank took part in the survey for the first quarter of 2017. They represent a majority of the Swiss market.
Important insights (Q2 2017):
- At around CHF 7 billion, in year-on-year terms total quarterly turnover was with 24.1% significantly above the figure for Q2 2016.
- Product group shares shifted compared to previous year: Once again, yield-optimisation products accounted for the lion’s share at 58%. Participation products constitute the second largest portion at 14.5% and leveraged products made up 14.2% of the total. Capital protection products continued to show an increase in demand and compared to Q1 2017an increase of 15%.
- Foreign exchange and equities remain the most frequently used underlying assets. Equity products represent the largest portion of total turnover, growing from 45% to 49% since Q2 2016. Compared to prior year, the share of foreign exchange products decreased from 45% to 34%. The share of fixed income products grew by 158% compared to Q2 2016 to now 12%.
- Non-listed products constitute about 71% of the turnover; this corresponds to a decline of the share of non-listed products compared to Q2 2016 (previous year: 73%).
- Even though the primary market represented a stable and larger share of turnover (66%), the secondary market again comprised around 95% of all transactions in Q2 2017.
- With a total share of 89%, USD, EUR and CHF are still by far the major currencies used: USD is the predominant currency in Q2 2017 with a share of 42% (prior year: 36%). The share of EUR is decreasing to 29% and CHF remains stable at 18%.
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