“Despite the persistence of severe turbulence on the market in the second quarter, the turnover of the sector was maintained at the level of the previous quarter”, commented the president of the SSPA, Markus Pfister.
In the second quarter of 2022, the branch achieved a turnover of 57 billion francs. It thus remained at the level of the first quarter, during which a turnover of 58 billion francs had been achieved. Performance optimization products represent the largest share of revenue in Q2 2022 (42%), followed by leverage products (26%). Capital protection and participation products account for 20% and 10% of quarterly revenue respectively in Q2 2022. In Q2 2022, discount certificates generated the highest revenue (CHF 11 billion), followed by capital protection certificates with coupon (10 billion francs) and mini-futures (7 billion francs). Equity products remain the dominant asset class with 47% of turnover, while Foreign Exchange, Fixed Income and Commodity securities represent respectively 26%, 10% and 2% of quarterly turnover. Unlisted products represent 72% of total turnover. With 56%, the primary market achieves a slightly higher share of turnover than the secondary market. The USD took the largest share of revenue with 38%. Together with the EUR and the CHF, which are the main currencies used for structured products, it represents 85% of total turnover.
The statistics compiled by the Boston Consulting Group take into account listed and unlisted products created in Switzerland or for Switzerland and sold nationally and internationally. The report has been optimized together with the participating SSPA banks for the first quarter of 2022. Due to the optimization of the report, only data from Q1 2022 will be reported in the future. SSPA members Banque Cantonale Vaudoise, Barclays Capital, Credit Suisse, Goldman Sachs, Julius Bär, Leonteq, Raiffeisen Suisse, Société Générale, UBS, Vontobel and Zürcher Kantonalbank participated in the data collection for the second quarter of 2022. They represent the major part of the Swiss market.
Main developments in the second quarter of 2022:
- Turnover from Swiss structured products of major SSPA members reached CHF 57 billion in Q2 2022. In April, total turnover was CHF 18 billion, in May CHF 19 billion before rise to 20 billion francs in June. In Q2 2022, discount certificates generated the highest turnover (CHF 11 billion), followed by capital protection certificates with coupon (CHF 10 billion) and minifutures (CHF 7 billion).
- Yield optimization products had the largest share of revenue at 42% in Q2 2022, representing CHF 24 billion, with foreign exchange as the preferred asset class (58%) and USD as main currency (34%). 90% of turnover was unlisted and 84% was traded on the primary market.
- The turnover share of leverage products amounts to 26%, representing a turnover of 15 billion francs, with equities as the preferred asset class (82%) and the euro as the main currency (51%). 74% of turnover was listed and 93% was traded on the secondary market.
- In Q2 2022, the revenue share of capital protection products reached 20%, or CHF 11 billion, favoring other asset classes (51%) and the USD as the main currency (65%) . 99% of turnover was unlisted and 74% was traded on the primary market.
- Turnover from participation products reached 10%, or 6 billion francs, with equities as the preferred asset class (71%) and the USD as the main currency (66%). 55% of turnover was unlisted and 77% was traded on the secondary market.
- Revenue from equity products amounted to 27 billion francs, followed by foreign exchange (15 billion francs), other asset classes (9 billion francs), fixed income securities (6 billion francs) and commodity (1 billion francs). Equity products thus reached 47% of turnover, while foreign exchange, other asset classes, fixed income products and commodities were 26%, 16%, 10% and 2%. respectively.
- Unlisted products achieved sales of 41 billion francs in Q2 2022, which accounted for 72% of total sales. The share of the turnover of listed products was 28%, the total turnover reached 16 billion francs.
- With turnover of 32 billion francs in Q2 2022, the primary market achieved higher turnover than the secondary market (25 billion francs), the corresponding turnover shares were 56% and 44 %.
- In Q2 2022, total USD product revenue was CHF 22 billion, representing a revenue share of 38%. The turnover share of EUR was 34%, which represented a total turnover of 19 billion francs. With a total turnover of 8 billion francs, the CHF achieved a turnover share of 13%.
SSPA Chairman Markus Pfister comments: “Despite continued severe market turbulence in the second quarter, industry turnover remained at the level of the previous quarter. The robustness of the overall turnover demonstrates that the structured products market offers investors stability even in a volatile market environment. In the second quarter, demand for currency discount certificates in particular increased, as rising interest rates and currency fluctuations created attractive investment opportunities. This shows that clients use structured products very skilfully.”