WFE data: trading value and volumes surge as investors flock to markets
London, 13 August 2024 – New data published by the World Federation of Exchanges (WFE), the global industry group for exchanges and central clearing counterparties, shows that investor appetite for listed securities rose in the first half of 2024. Trading value increased 11.7%, and volumes rose 9.6%, as markets were highly liquid globally despite the backdrop of economic and geopolitical uncertainties. The volatility we have seen in markets in recent weeks shows this uncertainty has carried over to the second half of the year.
In the six months to July 2024, global equity market capitalisation was up 5%, driven largely by the Americas, whilst the rapid growth in the APAC region reported at the end of 2023 slowed. EMEA’s market capitalisation was flat.
Compared to the previous half, IPOs fell 24.2%. The number of IPOs in the Americas rose by 36.4%, whilst both APAC and EMEA registered decreases, down -30.8% and -31.7% respectively. The number of listed companies is down marginally by 0.3% globally, though the number of listings in the Americas fell less than the same period the prior year. The EMEA region saw the sharpest decrease in number of listings, and APAC listings grew by 0.48%.
Despite the overall decline in capital raised through IPOs, the average size of an IPO went up 18.8% compared to H2 2023. This was partially due to seven unicorn listings. The largest unicorn, Puig Brands, listed on SIX Group’s BME Spanish Exchanges. SIX Group’s Swiss Exchange also hosted the second largest unicorn, Galderma Group, a pharmaceutical company.
Looking at other asset classes, exchange traded derivatives continued the growth trend over the last few years, rising 11.6%. There was a dramatic drop in currency options, down 38.2%, due to a regulatory change in India which requires ownership of the underlying asset before buying the derivative. The impact is marked because India was the largest market for currency options.
Key highlights:
- Equity trading value and volumes increased 11.7% and 9.6% respectively compared to H2 2023, and 9.71% and 18.25% compared with H1 2023, witnessing the highest number of trades in a half-year in the last five years, including the peaks observed during the pandemic. The APAC region recorded its maximum number of trades in a half-year in the last five years (18.68 billion trades).
- The volume of exchange-traded derivatives increased 11.6% compared to H2 2023 and 52.2% compared with H1 2023, amounting to 85.04 billion contracts.
- While, compared with H2 2023, equity and interest rate derivatives volumes saw double digit increases (16.5% and 16.3%, respectively), their highest level in the last five years, currency and commodity derivatives recorded double digit declines (-38.2% and -15.4%, respectively). ETF derivatives increased only 6.8% in H1 2024.
- Global equity market capitalisation increased 5% in H1 2024, compared to H2 2023, reaching USD 116.16 trillion, with over USD 5 trillion added to stock markets worldwide. While markets in the Americas region grew the most (+9.4%), APAC markets increased 1.4%, while EMEA markets were flat. When compared with H1 2023, there was an increase of 9.36% globally, mainly driven by the Americas region (15.82%).
- The number of IPOs decreased globally by 24.2% with respect to H2 2023 and by 8.7% with respect to H1 2023. While in the Americas region the number of IPOs rose by 36.4% with respect to H2 2023 and by 20% year on year, both APAC and EMEA registered decreases (-30.8% and -31.7% respectively, with respect to H2 2023 and -11.9% and -19.8% respectively, when compared to H1 2023). Global markets hosted 501 IPOs in H1 2024.
- The capital raised through IPOs saw a 10% decline compared to H2 2023 and a 17% decline with respect to H1 2023, a result driven by the APAC region, which in H1 2024 recorded its minimum level in the last five years, while the Americas and EMEA regions experienced significant increases (97.1% and 121.4% respectively, compared to H2 2023; and 89.2% and 86% respectively, compared with H1 2023). Despite the decline, global markets hosted seven unicorns in the first half of this year.
Dr Pedro Gurrola-Perez, Head of Research at the WFE commented, “For the second half of the year a decline in inflationary pressures and an ease in monetary policy may support the positive trends we observed in H1 2024. The persistent geopolitical tensions, a potential slowdown in the U.S. economy coupled with the uncertainty derived from the U.S. election, could inhibit market growth. If that’s the case, it will be hard on companies looking for capital, investors looking for attractive assets and savers looking to maximise their savings.”
Nandini Sukumar, CEO of the WFE commented, “Investor demand for exchange-traded securities continued to grow, reflecting the fundamental stability of public markets in times of uncertainty. The data shows that investors are here and are looking for capital allocation opportunities. Exchanges call on governments and regulators to pull the necessary policy levers to encourage businesses to float and benefit from public finance. Without a strong pipeline of companies coming to market, the whole economy suffers.”
The full paper can be read here.
For more information, please contact:
Edelman Smithfield +44 7813 407 665
wfe@edelmansmithfield.com
Cally Billimore +44 7391 204 007
Communications Manager communications@world-exchanges.org
About the World Federation of Exchanges (WFE):
Established in 1961, the WFE is the global industry association for exchanges and clearing houses.
Headquartered in London, it represents the providers of over 250 pieces of market infrastructure,
including standalone CCPs that are not part of exchange groups. Of our members, 36% are in Asia Pacific, 43% in EMEA and 21% in the Americas. The WFE’s 87 member CCPs and clearing services
collectively ensure that risk takers post some $1.3 trillion (equivalent) of resources to back their
positions, in the form of initial margin and default fund requirements. The exchanges covered by WFE data are home to over 55,000 listed companies, and the market capitalization of these entities is over $111tr; around $124tr in trading annually passes through WFE members (at end-2023).
The WFE is the definitive source for exchange-traded statistics and publishes over 350 market data
indicators. Its free statistics database stretches back more than 40 years and provides information and insight into developments on global exchanges. The WFE works with standard-setters, policy makers, regulators and government organisations around the world to support and promote the development of fair, transparent, stable and efficient markets. The WFE shares regulatory authorities’ goals of ensuring the safety and soundness of the global financial system.
With extensive experience of developing and enforcing high standards of conduct, the WFE and its
members support an orderly, secure, fair and transparent environment for investors; for companies
that raise capital; and for all who deal with financial risk. We seek outcomes that maximise the
common good, consumer confidence and economic growth. And we engage with policy makers and
regulators in an open, collaborative way, reflecting the central, public role that exchanges and CCPs
play in a globally integrated financial system.
Website: www.world-exchanges.org
Twitter: @TheWFE
