Second quarter 2019 turnover with CHF 82 bn almost at previous year’s level
Turnover of Swiss structured products recorded by the largest SVSP members stays almost at previous year’s level in the second quarter of 2019. The sector saw turnover in the second quarter of 2019 to reach CHF 82 bn, a slight decrease of CHF 1 bn or 0.5% relative to the previous year. Over the first half-year 2019, with -0.8% year-on-year growth total turnover holds nearly the previous year’s level and reached CHF 173 bn. Yield enhancement products (53%) were in particular demand, followed by leverage products (18%) and participation as well as capital protection products (15% and 13% respectively). Half of product turnover (50%) is based on equities, 29% on foreign exchange. The most important currencies for structured products were USD, EUR and CHF, accounting for 88% of the total turnover.
Zurich, 26th July 2019. Structured product value creation statistics drawn up by Boston Consulting Group take account of stock market 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, Commerzbank, Credit Suisse, Goldman Sachs, Julius Baer, Leonteq, Notenstein La Roche, Raiffeisen, UBS, Vontobel as well as Zurich Cantonal Bank took part in the survey for the second quarter of 2019. These represent the largest part of the Swiss market.
Most important developments in the second quarter of 2019:
- Total turnover in Q2 2019 of CHF 82 bn is slightly lower than the CHF 83 bn turnover in the prior-year quarter; growth rate compared to Q2 2018 was -0.5%. Over the first half-year 2019, total turnover decreased by -0.8% year-on-year and reached CHF 173 bn.
- With 53% yield enhancement products accounted for more than half of total turnover in Q2 2019, the nominal turnover increased by 9% to reach CHF 44 bn. Leverage products constituted the second-largest product group with 18% of total turnover, despite a 19% decrease in nominal turnover compared to Q2 2018.
- Total turnover for participation products amounted to CHF 12 bn in Q2 2019 (prior year: CHF 14 bn) and turnover share reached 15% (prior year: 17%).
- Reaching CHF 11 bn turnover, capital protection products made up13% of total turnover in Q2 2019, an increase of 2 percentage points compared to Q2 2018.
- With 50%, Equity products constituted the largest portion of total turnover in Q2 2019 despite a nominal turnover decrease of 8% compared to prior-year quarter. Compared to Q2 2018, the nominal turnover and the turnover share of Foreign Exchange products reached the same levels of CHF 24 bn and 29% respectively. The turnover of Fixed Income products rose in Q2 2019 to CHF 11 bn, the turnover share increased compared to previous year from 11% to 13%.
- The turnover share of non-listed products rose 6 percentage points to 68% in Q2 2019 while nominal turnover increased by 9% to CHF 56 bn compared to Q2 2018; on the contrary, nominal turnover of listed products fell by 15% to CHF 26 bn compared to a turnover of CHF 31 bn in Q2 2018.
- Turnover on the primary market grew by 13% to CHF 51 bn compared to prior-year quarter and its share rose by 8 percentage points to 62% compared to Q2 2018. By contrast, turnover on the secondary market declined by -17% from CHF 38 bn in Q2 2018 to CHF 31 bn in Q2 2019.
- USD is again the predominant currency in Q2 2019 with a share of39%, increasing by one percentage point compared to previous year. The share of EUR increased by 2 percentage points compared to Q2 2018 to 34%, CHF also gained share and reached 15%.
SSPA Chairman Georg von Wattenwyl on developments within the sector: “We are pleased to see a constant demand for structured products and a strong first half of the year. Innovative products and flexible investment solutions continue to be in demand in a still challenging environment, and structured products offer suitable vehicles for investor portfolios.”
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