Third Quarter Equities Volumes Solid Relative to 2017

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The following article includes graphics and analysis supplied by Mark Culpin, a cash equities business analyst with previous experience at Redburn and Credit Suisse.

Following typical seasonal patterns, third quarter trading in European and US equities declined from the second quarter but were consistent with prior year levels.  European trading levels seem unfazed by MiFID II while US volumes continued strong relative to 2017.

European Equities Activity

Levels of European equities trading activity eased in the third quarter from the second quarter, but were consistent with previous years.  Total trading activity in the third quarter of 2018 recorded a decline of 11% compared to second quarter levels, but increased .7% relative to the prior year.

MiFID II appears to have had no negative impact on European equities trading year-to-date.  Volumes have increased 3% in the first nine months of 2018 relative to the equivalent period in 2017 and are nearly identical to 2016 volumes.

U.S. Equities Trading

US trading volumes in the third quarter fell 7.5% from the second quarter but were up nearly 10% from the third quarter of 2017.  Trading in the quarter was the highest third quarter result since the third quarter of 2015.

Conclusion

The solid trading volumes, particularly in the US, are helping sustain cash equities units, offsetting brokerage unbundling pains, at least for now.

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About Author

Sandy Bragg is a principal at Integrity Research Associates. He has over thirty years experience as an investment research professional. Prior to joining Integrity in 2006, he was an Executive Managing Director at Standard & Poors, managing S&P’s equity research business and fund information properties. Sandy has an MBA from New York University and BA from Williams College. Email: Sanford.Bragg@integrity-research.com

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