Home / Uncategorized / Europe trades at just €7,900 per trade today (down from €19,000 in 2008)

Europe trades at just €7,900 per trade today (down from €19,000 in 2008)

I bet you thought I was talking about Europe's sovereign debt issue but no, I'm talking about the average trade size for equities trading across Europe having just received some fascinating data from the Federation
of European Securities Exchanges (FESE).

The data shows a considerable change in the
European equities markets over the past four years.

What the figures show is that the value per trade has been shrinking massively, thanks to high frequency trading and market volatility.

In 2008, the average daily trade on all European exchanges
was for €19,000.  Today, it’s just €7,900
per trade, and decreasing at a CAGR of 20%.

Even more interesting is the impact of the Multilateral
Trading Facilities (MTFs), with BATS Chi-X trashing the market rising from an
average daily turnover of €2.6 billion per day in 2008 to €7.9 billion today
(it was €9.5 billion daily last year). 

Turquoise has also seen an increase, from €200 million a
day in 2008 to €1.6 billion a day today (€1.9 billion last year).

Who’s the loser?

LSE Group, NASDAQ and SIX Swiss Exchange who have seen
their daily turnover halve from a combined €28.2 billion per day in 2008 to
just €15.2 billion today.

If you’re into this stuff, here’s the spreadsheet
Download FESE numbers (thanks to Diana Chan at EuroCCP for sending over).

If you cannot download, double-click and zoom on the image below:

Screen Shot 2012-11-15 at 13.00.42

Equally, if you’re into this stuff, you may want to come
to the next Clearing & Settlement Working Group plenary meeting on 11th
December at the offices of Kemp Little, 138 Cheapside (near St Paul’s).

The agenda is currently being firmed up, but will

  • The Risk, Regulation, Infrastructures and
    Technology Subject Groups updating on progress to date;
  • A special keynote from Mark Davies Vice
    President, Data Business Development, DTCC, who will cover the LEI story to
    date, DTCC's CICI utility, FSB progress and the next steps on global LEI
  • Details of the CAS-WG’s special and new partnership
    with the A-Team;

and a few other surprises.

Attendance is free so come along (just register here).




About Chris M Skinner

Chris M Skinner

Chris Skinner is best known as an independent commentator on the financial markets through his blog, the Finanser.com, as author of the bestselling book Digital Bank, and Chair of the European networking forum the Financial Services Club. He has been voted one of the most influential people in banking by The Financial Brand (as well as one of the best blogs), a FinTech Titan (Next Bank), one of the Fintech Leaders you need to follow (City AM, Deluxe and Jax Finance), as well as one of the Top 40 most influential people in financial technology by the Wall Street Journal’s Financial News. To learn more click here…

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  • Andrew Muir

    Interesting data… what do we think it tells us?
    Certainly, the trend since 2008 is for HF trades to move away from the mainstream exchanges. But since 2011, volume has been, if anything, gradually moving back the other way. Why? Any ideas?
    At first glance, the story since 2008 for the mainline exchanges looks pretty grim – but then, they don’t actually charge ad valorem for their services… their business model is more sensitive to the number of sides; actually, right now – a rather better and more sustainable model than the one I am sure they’d have preferred pre-2008. I’d like to see venue cost-per-execution plotted against these numbers, as a yardstick of how much value this competitive environment is delivering to us.
    It’s too early to say this heralds a renaissance for big, safe, known-quantity infrastructures with solid (if occasionally unexciting) and transparent business models – but I’m watching this space. Hopefully.