CMVM presented the most prominent events of the fourth quarter of 2023 for financial brokerage activity, especially data related to receiving and executing orders on behalf of others, trading for its own account, as well as registering and depositing securities on behalf of others and for private accounts. account.
CMVM presented the most prominent events of the fourth quarter of 2023 for financial brokerage activity, especially data related to receiving and executing orders on behalf of others, trading for its own account, as well as registering and depositing securities on behalf of others and for private accounts. account.
Thus, the number of financial intermediaries receiving orders for third parties increased in the fourth quarter of 2023, from 32 to 33. On the spot market (also known as the spot market or Spot) the growth of orders received was 22.5% in this quarter, to approximately 61,326 million euros. .
The CMVM says that compared to the third quarter of 2023, orders received on stocks and other securities (participation units of funds, ETFs, among others) decreased, in contrast to increases in orders received on public debt and private debt.
It is also worth noting the fact that in the spot market, the growth of orders received for assets traded in the Netherlands during this quarter contributed to establishing this market as the market of choice for investors during 2023 (55.2% of the total for the year).
When looking at the futures market (financial derivatives market), there was an increase in orders received by 16.9% in the quarter, to approximately EUR 803.614 million.
As in the previous quarter, the majority of orders were for other derivatives (such as futures, swaps, etc.) and were transferred by non-resident professional investors.
“Internal absorption continues to be the type of execution market that declined the most compared to Q3 2023, and now represents 15.2% of the total,” compared to 25.6% in Q3.
International markets continued to be the main execution market, representing 82.2% of the total.
Stock orders executed in the fourth quarter
In addition to reception, CMVM analyzes the execution of commands on behalf of others.
Again in the spot market, there was an increase in executed orders by 12.7% in the quarter, to approximately €54,039 million.
The growth of orders executed on all financial instruments decreased, except for orders on private debt, which decreased by about 22% compared to the third quarter.
Orders executed via 'domestication' were the only ones to decline in the quarter, with orders executed in national markets showing the highest growth in the quarter (56.3%), the regulator reveals.
On the futures market, there was an increase in executed orders by 17.6% in the quarter, reaching approximately 789,113 million euros.
Transactions executed in options, contracts for difference (CFDs) and other derivatives (futures, swaps, etc.) recorded the largest increases (92.2%, 30.3% and 16.7%), respectively, in contrast to orders in futures contracts, which decreased by 24.3%. Compared to the third quarter.
Orders related to exchange rate derivatives (as in Q3 2023) continued to favor investors in Q4, CMVM reveals.
“Order fulfillment continued to be primarily in international markets (83%), with only orders occurring via 'ingestion' declining compared to Q3.
The data revealed by the CMVM also covers private trading.
The number of financial intermediaries here remained unchanged compared to the third quarter, with a total of 25.
In the spot market, there was a growth in orders executed by 13.3% in the quarter, reaching approximately 42,912 million euros. Compared to Q3, private debt was the only security to decline (36.1%) in proprietary trading, despite representing 19.0% of the total.
On the futures market, CMVM reported a growth in transaction value of 52% in the quarter, to approximately EUR 79,435 million.
Trading in other derivatives (futures, swaps, etc.) continued to receive the most significant quarterly weight (90.6%).
The markets regulator says the fundamental factors with the greatest weight remain, as in the third quarter of 2023, interest rates (72.9%) and exchange rates (24.6%).
Regarding the registration and deposit of securities on behalf of others, there was “an increase in the amount under registration and deposit in third party accounts (spot and futures markets) by 3.3% in this quarter, to approximately €263,437 million”.
The market share of the four largest custodians decreased slightly, from 74.8% to 74.7% during the quarter.
In contrast, there was a decrease in the amount under registration and on own account deposits (spot and futures markets) by 4.9% in the quarter, to approximately EUR 200,356 million.
The market share of the four largest custodians fell from 76.8% to 74.7%.
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