Turnover in third quarter of 2021 slightly lower than previous year’s level at CHF 80 billion

Turnover in Swiss structured products recorded by the largest SSPA members was CHF 80 billion in Q3 2021, 7% below the quarterly result for Q3 2020. At 49%, yield enhancement products accounted for slightly less than half of total turnover in Q3 2021 (CHF 39 billion). Leverage products continued to represent the second-largest share of total turnover at 25%. Despite a slight decline in turnover from CHF 48 billion to CHF 47 billion, equity products accounted for the largest turnover share at 59% (prior year: 56%), followed by foreign exchange products at 24%. The nominal turnover in the primary market was slightly lower in comparison with Q3 2020 at CHF 42 billion and corresponds to 53% of total turnover. The most important currencies are EUR, USD and CHF, with a total share in turnover of 86%.

Zurich, 2 December 2021. The structured product value creation statistics drawn up by Boston Consulting Group take account of listed and unlisted products created in or for Switzerland that are sold both nationally and internationally. SSPA members Banque Cantonale Vaudoise, Barclays Capital, Credit Suisse, Goldman Sachs, Julius Bär, Leonteq, Raiffeisen Schweiz, Société Générale, UBS, Vontobel and Zurich Cantonal Bank took part in the survey for the third quarter of 2021. They represent the majority of the Swiss market.

Most important developments in the third quarter of 2021:

• The turnover share of yield enhancement products increased in Q3 2021 to 49% (prior year: 46%); the nominal turnover remained unchanged at CHF 39 billion. Leveraged products were down in comparison with the previous year, but still represent the second-largest share of total turnover at 25% (prior year: 31%). The nominal turnover declined to CHF 20 billion (prior year: CHF 26 billion). In Q3 2021, the nominal turnover of capital protection products remained at CHF 9 billion compared with the same quarter of the previous year and the turnover share increased from 10% to 12%. The nominal turnover of participation products fell in Q3 2021 to CHF 10 billion (prior year: CHF 11 billion) and continues to represent 13% of quarterly turnover.
• Despite the decline in nominal turnover from CHF 48 billion to CHF 47 billion in Q3 2021, equity products account for the largest share of turnover at 59% (prior year: 56%). The share of total turnover accounted for by foreign exchange products remained unchanged at 24%; nominal turnover decreased to CHF 19 billion (prior year: CHF 21 billion). The nominal turnover of fixed income products amounted to CHF 7 billion (prior year: CHF 9 billion) and the turnover share fell from 10% to 8%.
• In Q3 2021, non-listed products accounted for CHF 52 billion (prior year: CHF 53 billion) and thus increased to 66% of the turnover in Q3 2021 (prior year: 62%). The nominal turnover of listed products declined in Q3 2021 compared with the previous year from CHF 32 billion to CHF 27 billion and the share in turnover thus fell from 38% to 34%.
• At 53% of total turnover, the nominal turnover of primary market products continued to dominate, albeit declining in Q3 2021 to CHF 42 billion (prior year: CHF 43 billion). The share of turnover accounted for by the secondary market fell from 49% to 47% compared with the same quarter of the prior year and achieved a nominal turnover of CHF 38 billion (prior year: CHF 42 billion).
• The nominal turnover of the EUR increased in Q3 2021 to CHF 34 billion (prior year: CHF 27 billion) and a turnover share of 42% (prior year: 32%). At CHF 26 billion (prior year: CHF 38 billion) the turnover share of the USD fell sharply from 44% to 32%. In a quarter-on-quarter comparison, the CHF slightly lost turnover share (now 11%, prior year: 12%) and nominal turnover also fell slightly to CHF 9 billion (prior year: CHF 10 billion).

SSPA Chairman Markus Pfister commented: “Following the record turnover in the Covid-19 year 2020, turnover of Swiss structured products is continuing to normalise. The third quarter shows that investors are taking advantage of the volatile market environment, particularly with yield enhancement products, and are actively seizing investment opportunities. Equity products are still seen as promising investments.”

Click on the link below for the full set of statistics: sspa.ch/media