New investment trend among the Swedes. Trading with exchange-traded products has reached historical levels.
There is no doubt that Exchange-traded products (ETP’s) have become a common form of investing for more Swedes lately. Trade beats all historical records and the market is growing exponentially, unlike the trade with ETF’s which has previously been high. The driving force behind the growth of ETP trading is the NGM stock exchange via its marketplace NDX. NDX has about 80 percent of the market in the Nordic region.
This past month, the stock market has been turbulent and many investors have had a year’s worth of development deleted. When the market was at its most volatile and many sold in despair, record number of investors also flocked to the ETP market to shop for Bull & Bear certificates, Mini Futures, Mini Futures BEST / Unlimited Turbos etc. The reason? They saw an opportunity to make money in the fall of the market instead of the other way around. According to NGM, the leading exchange on the ETP market, the number of trades so far this year has already surpassed the total number of trades made throughout 2013. This coincides with the decrease of the previously so popular ETF’s. In just two years, trading with ETF’s has declined by more than 50 percent.
- Trading has been intense this year, especially during the last month when we were up on historic levels and broke all previous records. If we compare the number of transactions so far this year with the same period last year, we see an increase of 30 percent, announces Tommy Fransson, Deputy CEO at NGM.
But private investors are not only choosing ETP’s when the stock market is turbulent. Trading has become increasingly common, and the product range is wide. Investors can trade anything from Alibaba, Facebook and H & M as the underlying, even indexes. The most common underlying assets this year are the OMXS30- and DAX 30-indexes and the companies Nokia, Apple and Volvo.
NGM has recently been instrumental in increasing the market for ETP's and today NGM has over 80 percent of the market in the Nordic region. Other players on the Nordic market are Nasdaq and Oslo Stock Exchange. NASDAQ, Stockholm and NASDAQ Helsinki have a total market share of around 18 percent and their trading numbers have remained relatively unchanged this year. At the start of 2013, Nasdaq had a market share of around 36 percent. Tommy Fransson on NGM explains the background to NGM's progress.
- We have a concept that works, one that is appreciated by our customers, and that is a prerequisite to grow. In addition, we work with talented issuers and exchange members who are responsive to the market and deliver what customers demand. The result is an increased interest and increased trade in the products, says Tommy Fransson, NGM.
For more information, please contact:
Tommy Fransson, Deputy CEO, NGM
Phone: +46(0)8 566 390 49