NO 245 – JULY 2013

WFE Focus

The global market capitalization continued to increase (+3%) in the first half of 2013.

The relatively good performance of stock markets in the recent period was largely driven by the Americas. The important growth rates of market capitalization observed in the last three semesters in Americas (chronologically +10.3%, +7.4% and +7.4%) enabled this region to significantly surpass the market capitalization level observed in June 2011, before the sharp decline in the summer 2011.

By comparison, the Asia Pacific market capitalization slightly decreased in the first half of 2013 (-1.2%). This decrease was mainly due to exchange rates effect. In constant USD, the market capitalization increased by 4.6%. It increased by 0.6% in Europe, Africa, Middle East (+3.6% in constant USD). In both regions market capitalizations have not recovered fully from two years ago.

New listings were a non-factor in the market capitalization for the first half of 2013 as the total number of listed companies at WFE level was flat (-0.1%).

Recovery of trading volumes on stock exchange

For the first time since 2008, the value of share trading1 of WFE stock exchanges increased sharply (+23%) in the first half of 2013. While other positive growth rates could be observed in some other semesters since Lehman Brothers bankruptcy, they were much lower (maximum +5% in the first half of 2011).

This recovery was primarily driven by Asia Pacific region, where the value of share trading jumped 52% in the first half of 2013. In Asia Pacific region, Japan experienced the highest growth rate (+111%) following the new monetary policy and Mainland China also experienced a sharp increase of value of share trading (+54%).

Other regions also experienced significant increase of share trading value (+16% for EAME and + 10% for Americas).

In terms of number of trades, an important increase was also observed in the first half of 2013 (+12%).

In terms of number of trades, an important increase was also observed in the first half of 2013 (+12%), but in Asia Pacific and Americas, the increase in number of trades (respectively +17% and +2%) was much less pronounced than for value of share trading.

The average transaction size (weighted by value of share trading) increased in Asia Pacific but remained stable in EAME. The average transaction size in Asia Pacific is still below the WFE average indicating an active retail market. The increase in the first six months of 2013 was mainly driven by Japan where the average value increased by 57%.

Exchange Traded Derivatives (ETD)

After a negative year in 2012 for ETD (volumes declined by 15%), the number of derivatives traded on-exchange rose again in the first half of 2013 (+14%). Moreover all classes of underlying assets were concerned by this increase: equity derivatives increased by 13%, interest rate derivatives by 23%, commodity derivatives by 7% and currency derivatives by 19%.

Bond trading

The value of bond trading also slightly recovered for the first six months of 2013 (+1.2%) after the 20% decline observed in 2012.


ETFs saw a sharp increase (+22%) on the turnover realized on the first six months. The increase was mainly the Americas region performance (+19%) which represents more than 88% of the WFE total turnover. European ETFs are mostly traded off-exchanges.

Securitized derivatives (warrants and certificates)

Volumes for this segment increased by 29%, driven by Asia Pacific region that accounted for 76% of the WFE total turnover.

1. Domestic equity market capitalization

2a. Share trading value

2b. Number of trades in equity shares

3. Broa d equity market index performances among all WFE members

4. Value of bond trading

5. Securitized derivatives - turnover by region at mid-2013

6. ETFs - turnover by region at mid-2013

7. Derivatives markets