Spectrum Markets reports record Q3 trading volumes

Pan-European trading venue Spectrum Markets has reported a robust uptick in its third-quarter business performance, signaling resilience in the face of a challenging equity market environment and inflationary pressures.

In a recent release, Spectrum disclosed that its orderbook turnover saw a 10% year-on-year increase to €921 million, marking the venue’s second strongest quarter on record. Trading volumes followed suit, climbing by 5% with 421 million securitized derivatives traded from July to September 2023. This upswing from last year’s 401 million during the same timeframe reflects the platform’s expanding footprint and its rising appeal among European retail investors.

An interesting takeaway from the third quarter is the shift in trading patterns, with 32.3% of trades taking place outside of the regular trading hours. In terms of product popularity, indices led the charge with 87.6% of the trades, followed by currency pairs, commodities, equities, and cryptocurrency-based products. The DAX 40, NASDAQ 100, and S&P 500 emerged as the top-traded underlying assets.

The latest Quarterly Business Update highlighted two notable alliances. The company partnered with Italian retail broker Directa to provide European investors with access to securitized derivatives trading. Additionally, Societe Generale, a member since 2022, has expanded its product offerings to Italian traders, further entrenching Spectrum’s presence in the region.

“Despite the wider market uncertainty we’ve seen during the last few months, we remain committed to continuously delivering the best possible trading experience for our members and their retail investor clients, exploring new partnerships, expanding our offering and developing our ‘plug and play’ trading infrastructure around Europe,” said Spectrum Markets Nicky Maan.

Spectrum also highlighted its efforts to expand its offerings, noting that the number of available instruments on the platform has grown to nearly 18,000 ISINs.

These positive trends align with Spectrum’s overarching growth strategy, which involves listing more products on the platform and increasing participation from retail investors across Europe. The platform has welcomed new members and partnerships over the past year, contributing to its expanding user base.

Most recently, Spectrum added UniCredit Bank AG as a new member in May. The pan-European bank introduced constant leverage warrants and covered warrant products on the platform, making them accessible to retail investors in Germany through their brokers or banks.

Furthermore, Spectrum became a supporting member of the German Derivatives Association (DDV) in June. This move allows the platform to actively contribute to industry committees, working groups on regulatory initiatives, and share insights developed from its pan-European trading network.

By joining the DDV, Spectrum Markets aligns itself with an organization that represents 95% of the certificates market in Germany. The primary objective of the DDV is to enhance the regulatory environment for structured products both within Germany and across Europe. This applies in particular to voluntary commitments with regards to costs and product transparency for investment certificates.