Spectrum
Markets reported a significant surge in after-hours trading activity for August
2024, reaching its highest level since November 2022. The pan-European trading
venue for securitized derivatives saw 38.7% of trades occurring outside
traditional market hours, reflecting a growing appetite among retail investors
for round-the-clock market access.
Spectrum Markets Sees
Record After-Hours Trading in August 2024
The
Frankfurt-based multilateral trading facility (MTF), which offers 24/5 trading
to retail investors across Europe, has been monitoring a steady increase in
demand for extended trading hours since its launch in August 2019. This latest
data point underscores the platform’s success in meeting the evolving needs of
European retail traders.
For
comparison, in November last year, 32.3% of all transactions occurred in
after-hours trading, which is more than 6 percentage points less than
currently.
Michael
Hall, Head of Distribution at Spectrum Markets, attributed the spike in
after-hours trading to “significant market-sensitive events that triggered
spikes in volatility” during August. This increased volatility appears to
have driven investors to seek more flexible trading options.
Two months
ago, the European trading venue for retail investors also
published its H1 2024 business update, revealing a mixed performance amid
more challenging market conditions. For example, it reported a 15% volume
decline compared to the same period a year earlier. Spectrum reached a turnover
of $1.5 billion, $200 million lower than in H1 2023.
Despite the
downturn, Spectrum Markets demonstrated some resilience and extended its
product range to include approximately
1,800 ETFs. Although
Spectrum’s results for the first half of 2024 indicate a downturn compared to
the previous year, it’s important to recognize that 2023
was an exceptionally strong year for the company.
Retail Investors Turn
Bearish
Spectrum’s
proprietary SERIX sentiment indicator revealed a bearish shift in investor
outlook, particularly towards the French CAC 40 index. The SERIX value for the
CAC 40 dropped from a neutral 100 in July to a bearish 93 in August, reflecting
growing caution among retail investors towards the French economy in the
post-Olympics period.
“Our
bearish investor sentiment index indicates a degree of pessimism among retail
investors, as the attention switched back to politics. After the heightened
political uncertainty caused by President Macron’s call for a snap election in
June, the upcoming Olympics worked as a distraction to investors’
concerns,” added Hall.
Trading Volume, Distribution, and Top Traded Markets
While the
surge in after-hours trading was a standout feature, Spectrum’s August data
revealed other noteworthy trends.
The total
order book turnover for August 2024 reached €306.3 million. The distribution of
trades across asset classes showed a strong preference for indices, accounting
for 82.2% of the turnover. This was followed by commodities at 7.4%, equities
at 4.5%, cryptocurrencies at 3.1%, and currency pairs at 2.8%.
The NASDAQ
100 led as the most traded underlying market, representing 34.3% of trades. It
was followed by the DAX 40 at 26.6% and the DOW 30 at 11.4%.
In a move
to strengthen its industry position, Spectrum
Markets became a member of the German Federal Association of Investment Firms during the
first half of 2024.
This article was written by Damian Chmiel at www.financemagnates.com.
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