Turnover in Q2 2024 slightly higher at CHF 51 bn – reverse convertibles with CHF 13 bn top-selling products

The industry achieved a turnover of CHF 51 bn in the second quarter of 2024. It was thus around 18% above the previous year’s level, when sales of CHF 43 bn were achieved. The largest turnover share in Q2 2024 is accounted for by yield enhancement products (47%), followed by leverage products (28%). Participation and capital protection products accounted for 11% and 9% of quarterly turnover in Q2 2024, respectively. In Q2 2024 reverse convertibles generated the highest turnover (CHF 13 bn), followed by warrants with knock-out (CHF 7 bn), and trackers (CHF 5 bn). Equities remain the dominant asset class with 54% of turnover, while Foreign Exchange, Fixed Income and Commodities account for 27%, 10% and 4% of quarterly turnover, respectively. Non-listed products generate 64% of total turnover in Q2 2024. At 62%, the primary market achieves a higher share of turnover than the secondary market. The USD achieved the highest share of turnover with 42%. Together with the EUR and CHF as the most important currencies for Structured Products, it accounts for 89% of total turnover.

Zurich, 16 August 2024. The statistics compiled by Boston Consulting Group take into account listed and non-listed products that are created in or for Switzerland and sold nationally and internationally. The SSPA members Banque Cantonale Vaudoise, Barclays Capital, Credit Suisse, Goldman Sachs, Julius Bär, Leonteq, Raiffeisen Switzerland, Société Générale, UBS, Vontobel as well as Zürcher Kantonalbank took part in the survey for the second quarter of 2024. They represent a majority of the Swiss market.

Most important developments in the second quarter of 2024:

• Turnover of Swiss structured products of the major SSPA members amounted to CHF 51 bn in Q2 2024. Total turnover was CHF 18 bn in April and CHF 17 bn in May and June respectively. In comparison total turnover of CHF 51 bn in Q2 2024 was above Q1 2024 (CHF 49 bn) and Q2 2023 (CHF 43 bn). In Q2 2024 reverse convertibles generated the highest turnover (CHF 13 bn), followed by warrants with knock-out (CHF 7 bn), and trackers (CHF 5 bn).
• Yield enhancement had the largest turnover share, at 47% in Q2 2024, representing CHF 24 bn, with equity as the preferred asset class (49%) and USD as the main currency (40%). 87% of turnover was not listed and 90% was traded in the primary market.
• Leverage products’ turnover share amounted to 28%, representing a turnover of CHF 14 bn, with equity as the preferred asset class (69%) and EUR as the main currency (54%). 83% of turnover was listed and 77% was traded in the secondary market.
• Participation products’ turnover share amounted to 11%, representing CHF 6 bn, with equity as the preferred asset class (70%) and USD as the main currency (44%). 59% of turnover was not listed and 79% was traded in the secondary market.
• Capital protection products’ turnover share amounted to 9%, representing CHF 5 bn, preferring fixed income (76%) and USD as the main currency (82%). 97% of turnover was not listed and 94% was traded in the primary market.
• The turnover of equity products amounted to CHF 27 bn, followed by foreign exchange (CHF 14 bn), fixed income (CHF 5 bn), other asset classes (CHF 2 bn), and commodities (CHF 2 bn). Equities products thereby reached a share of 54%, while foreign exchange, fixed income, other asset classes products, and commodities were at 27%, 10%, 5% and 4% respectively.
• Non-listed products realized a turnover of CHF 33 bn in Q2 2024, which translated to 64% of total turnover. The turnover share of listed products was 36%, reaching CHF 19 bn.
• With a turnover of CHF 32 bn in Q2 2024 the primary had a higher turnover than the secondary market (CHF 19bn). The corresponding turnovers shares were 62% and 38%.
• In Q2 2024 the total turnover of USD products amounted to CHF 21 bn, representing a turnover share of 42%. The turnover share of EUR was 33%, corresponding to a total turnover CHF 17 bn. With a total turnover of CHF 7 bn the CHF accounted for a turnover share of 14%.

SSPA President Georg von Wattenwyl commented: ” The recovery trends from the first quarter of 2024 after a challenging environment in 2023 continued in the second quarter. Reverse convertibles remained highly popular with investors who made targeted and profitable use of structured products.”