Exchange trading around the world rebounded in the first half of 2014, reports the World Federation of Exchanges Ltd. (WFE) in its latest market stats report.
The WFE says that the value of share trading rose 10% worldwide in the first half of the year to US$29.7 trillion, compared with the second half of 2013. Trading was up 6.8% on a year over year basis.
The rise in trading value was largely driven by the continuing strong performance of equity markets, the WFE notes. It reports that global market capitalization rose 6% in the first half to US$68.7 trillion – a 21% year on year increase. However, the WFE says number of trades also rose by about 10% in the period.
The initial public offering (IPO) markets were also quite strong, the WFE observes. While the number of IPOs in the first half was down by 11% from the second half of 2013, the volume of deals was up 42% year over year. And, total investment flows (in U.S. dollar terms) also increased 17% compared to the second-half of 2013, it said.
“The numbers are interesting. After several years of decline we are witnessing signs of a recovery in exchange volumes in the recent period,” said Grégoire Naacke, senior analyst at the WFE. “The IPO numbers mirror this trend. The number of companies coming to market has surged. The question now is will it last? As regulatory mandates begin to take effect will there be a greater shift from [over-the-counter] to exchange.”