Deutsche Börse's Cash Markets Resume Months-Long Fall in Volumes in October

The cash markets of Germany's Deutsche Börse exchange resumed its months-long fall in trade volumes in October declining by -14% to €98.16 billion. Year-over-year (YoY), the volumes sank by -21%.

Deutsche Börse disclosed these figures in its cash market trading volumes for October 2022 published on Tuesday.

In September, trading volumes in the cash markets improved 15% month-over-month (MoM) to €113.63 billion, reversing a months-long shrinkage that started in June. Earlier in June, the cash markets slumped by -11% to €144.1 billion, which further slid by -17% to €120.2 billion in July, and again, worsened to €99.23 billion in August, which represents a -17% drop.

Gloomy October

Finance Magnates’ analysis of the details shared by Deutsche Börse shows that various trading venues and asset classes traded recorded negative growth in October.

📊Deutsche Börse’s cash markets generated a turnover of €98.6 billion in October
Xetra: €96.02 billion
Börse Frankfurt: €2.14billion
Read more in today's press release ➡ https://t.co/i1mN3XLJ8G pic.twitter.com/Md0Oaf3l6P

— Cash Market (@DBCashMarket) November 1, 2022

On Xetra, Europe's leading trading venue and reference market for German blue chips, equities and exchange-traded funds (ETFs), total trading volumes dropped -14% MoM to €96.02 billion. When compared to the same period in 2021, the number represents a 20% YoY dip.

Furthermore, the average daily volumes of cash trading on Xetra slumped -10% MoM and -20% YoY to €4.57 billion from €5.05 billion in the previous month. In a similar fashion, total trading volumes on Börse Frankfurt, a private investors-focused trading venue, decreased -15% MoM and -43% YoY to €2.14 billion.

Negative Asset Growths

According to Deutsche Börse, by type of asset class, equities accounted for 80% or €78.75 billion of the entire turnover generated by its cash markets. Finance Magnates’ analysis shows that this represents a -15% MoM drop from the €92.71 billion cash trading in equities posted in the previous month.

Furthermore, while trading in exchange-traded funds (ETF), commodities and notes accounted for 19% of volumes generated in the cash markets in October, trading in this asset class dropped -6% MoM to €18.29 billion. However, things were different for cash trading in bonds, certificates and funds on Deutsche Börse. While trading in bonds jumped 17.4% MoM to €0.27 billion, trades in certificates fell -28% to €0.80 billion. Additionally, trades in funds remained flat, returning €0.05 billion, which is the same as September 2022.

Index and Stock Performance in October

According to Deutsche Börse, the stock of Linde PLC, the world's largest producer of industrial gases, emerged as the DAX stock with the highest turnover on Xetra in October. The company's stocks generated €3.99 billion from cash trades.

The DAX Stock Index tracks the stock performance of the 40 biggest German companies by market capitalization and liquidity. Last month, Volkswagen AG, a German multinational automotive manufacturer, claimed the top spot on the DAX Stock Index.

On the contrary, Commerzbank AG, a German universal bank, retained its leading position on the MDAX Index which tracks German businesses trading on the Frankfurt Stock Exchange. However, with a total turnover of €0.78 billion in October, Commerzbank AG’s MDAX performance dropped -36% as the turnover came in €1.22 billion earlier in September.

Still, on index performance, VERBIO Vereinigte BioEnergie AG, a German manufacturer and supplier of biofuels, retained its number spot on the SDAX Index which tracks the performance of 70 small and medium-sized firms in Germany. Cash trades in VERBIO’s stocks came in at €172 million, which is a 15% jump from the €149 million in turnover generated in September.

In the EFT segment, the iShares Core MSCI World UCITS EFT generated the largest volume in October with €816 million. This is a reprise of its performance in September. However, compared to the previous month's €812 million in turnover, the EFT generated just an 0.5% marginal growth rate in October.

The iShares Core MSCI World UCITS EFT tracks the performance of an index composed of companies from developed countries.