European Capital Markets Institute, Research Report No. 14
At the time of drafting this report, Love Gleisner was a Research Trainee at ECMI, and Apostolos Thomadakis, Ph.D. is a Researcher at ECMI.
- European market capitalisation increased by 11.3% in 2017.
- Number of listed companies on European exchanges displayed positive growth for the first time in seven years and IPO investment flows grew by 37.9%.
- Number of ETF listings on European exchanges grew in 2017 but the value of ETF trading declined by 12.8%.
- Notional amounts of outstanding debt in EU28 grew both in terms of value and share of GDP.
- Notional amounts of debt issued by non-financial corporations continued to grow, signalling a change in financing strategies among EU28 businesses.
- Outstanding volumes of covered bonds continued to decline, predominantly driven by declining amounts of public sector bonds.
- Usage of CDOs as collateral for securitisation issuance grew in 2017 while aggregate issuance declined.
- European markets exhibited overall growth with turnover on interest rate futures being up by 29.9% in 2017.
- Global trading in commodity derivatives, unlike interest rate derivatives, saw its first year-on-year decline since 2011.
- Strong growth in trading of equity derivatives in emerging markets.
- Strong appetite for short-term instruments and interest rate derivatives (IRD) contracts in global over-the-counter (OTC) trading.
- Gross market value of dollar-denominated IRD contracts declined to lowest level since the financial crisis.
- Central clearing continues to make inroads for IRD contracts.
Investment and mutual funds
- Net assets of European investment funds reached an all-time high of €14.9 trillion in 2017.
- Net assets of alternative investment funds (AIF) saw its ninth consecutive year of growth.
- Growth for UK investment funds recovered following the aftermath of the 2016 referendum.
* The ECMI Statistical Package retrieves, compiles and analyses data from publicly available sources and reports as follows: Section 1: WFE, FESE and trading venues; Section 2: BIS, ECB, ECBC, AFME, WFE, FESE and trading venues; Section 3: BIS, WFE, FESE and trading venues; Section 4: BIS and WFE; Section 5: EFAMA, OECD, Pensions Europe and Insurance Europe; Section 6 to 8: Eurostat, IMF and World Bank.
Information on the 2018 ECMI Statistical Package and how to download it can be found here.