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In June, the trading at the Nordic Growth Market NGM's business area NDX reached record levels. More than SEK 1.4 billion was traded compared to SEK 270 million during June 2009. The number of trades increased by 171 per cent to 36 098 compared to 13 305 in June 2009. The first six months showed strong growth, increased volumes and increased penetration. In May, for example, the market share of NDX within the segment Knock Outs, consisting of Turbo Warrants and Mini Futures was 88 per cent of the total Swedish stock exchange trading in this segment.
"The interest in these instruments is growing steadily. Investors have the opportunity to invest over the stock exchange in otherwise inaccessible markets and assets, such as commodities, foreign stock markets or currencies. Through these instruments there is an opportunity to make money in both the rise and decline, but even when the market moves sideways. NGM contributes with a competitive marketplace and is a major contributing reason for Sweden currently having a diversity of issuers and investment opportunities, and this creates a further significant benefit to our members' customers. Our cost free, for end users, educational plat form has yielded very good results. The interest in and knowledge of, these products is steadily increasing", says Tommy Fransson, Business Manager NDX.
The number of listed instruments on NDX June, 30th 2010 was 2592 (1612).
Issuers
The number of issuers in NDX is currently 16. In the segment Knock Outs, Commerzbank was the single largest actor the first six months, followed by Royal Bank of Scotland. The most recent issuer is Öhman Fondkommission which since its start in June has listed 309 new instruments on NDX.
NDX Bonds
Primary market products such as index bonds are listed as NDX Bonds. Today there are 525 listed instruments issued by 14 different issuers.
New types of certificates
During 2010, Commerzbank, Nordea and Öhman issued so-called Bull & Bear Certificates, a constant leverage product which gives investors the opportunity to a leverage effect if the underlying market belief is correct. NDX also has a certificate type without leverage, so-called "Trackers". Bull & Bear certificates and Tracker certificates are now issued on the following underlying assets:
On the Swedish certificate market there is currently four issuers of Bull & Bear Certificate where three are active on NDX.
Other events
Elasticia
To further improve the market for end users and issuers NGM has developed a new
stock trading system - Elasticia. The launch takes place on October 11th, 2010
and subsequently an investment in the Finnish and Norwegian market will
commence, as we believe that end customers in these two countries will be
favored strongly by NGM transparent and flexible market model.
The financial market has long been reflected by the fact that more and more data
is sent between systems and that more and more trading is being made. This has
spurred the development of systems that are involved in the trade of dealing
with the ever increasing amount of data being handled. This is also evident in
Sweden for the share trading as well as for derivative trading. At NGM, we
expect that the trend will continue and that the number of products to be
launched and traded in our systems will increase significantly in the future.
Elasticia is tailored to meet the demands of the world's leading issuers and is
a prerequisite for a vibrant and competitive Nordic certificate and warranty
market.
NDX Education
Since 2009, NGM has been running na education platform called NDX Education in order to spread knowledge and highlight the opportunities and risks within this expanding market. During the first six months a weekly educational series on exchange-traded investment products was published weekly in the Swedish daily Dagens Nyheter. This investment continues even during the second half of 2010.
Together with E24, NGM has initiated a Swedish championship in investment attracting approximately 7,000 contestants.
In March, NDX launched a new Swedish standard categorization for investment products - NDX Swedish Instrument Matrix 2010. Its purpose is to create transparency, harmonization and understanding of investment products. The categorization has been made jointly and in accordance with EUSIPA ¬- the European Structured Investment Products Association. With a growing internationalization of this business, this matrix is of great assistance to both investors and the industry.
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