WSE - Warsaw Stock Exchange SA

03/28/2024 | Press release | Distributed by Public on 03/28/2024 05:21

Share of Investors in Financial Instrument Turnover on GPW in 2023

Share of Investors in Financial Instrument Turnover on GPW in 2023

2024-03-28 12:05:37

PRESS RELEASE

  • Retail investors generated 16 percent of equity turnover on the GPW Main Market in 2023 (-1 pps YoY), domestic institutional investors generated 19 percent (stable YoY), while the share of foreign investors increased by 1 pps to a historically high 65 percent.
  • On NewConnect, domestic retail investors remained in the lead: their share in turnover was 84 percent (stable YoY). The share of foreign investors increased to 7 percent (+2 pps YoY). The share of domestic institutional investors decreased to 9 percent (-2 pps YoY).
  • Foreign investors had the biggest share in derivatives turnover in 2023: for the second consecutive year, they generated 38 percent. The share of institutional investors increased by 3 pps to 30 percent. The share of retail investors decreased by 2 pps YoY to 32 percent of turnover.

GPW Main Market

Foreign investors contributed the biggest share to equity turnover on the GPW Main Market in 2023, as in previous years. They generated 65 percent of turnover, i.e., 1 percentage point more than in 2022 and the highest share ever. Foreign investors generated 66 percent of turnover in H2 2023, i.e., 1 percentage point more than in H1 2023. Domestic institutional investors generated 19 percent of turnover in 2023, the same as in 2022. Institutional investors generated 19 percent of turnover in H2 2023, 1 percentage point more than in H1 2023. The share of retail investors in turnover on the GPW Main Market was 16 percent in 2023, down by 1 percentage point year on year. Retail investors generated 15 percent of turnover in H2 2023, 2 percentage points less than in H1 2023.

Other institutions [1] (with a share of 27.7 percent) were the leading group of domestic institutions in H2 2023, followed by market makers (24.0 percent) and investment funds (20.1 percent).

Table 1. Investors structure on the Main Market in shares (%)

Source: GPW data based on Exchange Members' broker orders

NewConnect

On NewConnect, domestic retail investors had the biggest share of turnover at 84 percent in 2023, the same as in 2022. The share of retail investors in turnover in H2 2023 was 83 percent, a decrease of 2 percentage points compared to H1 2023. The share of institutional investors was 9 percent in 2023, down by 2 percentage points year on year; the share of foreign investors was 7 percent (up by 2 percentage points year on year). The share of institutional investors and foreign investors in turnover in H2 2023 was 9 percent (the same as in H1 2023) and 8 percent (up by 2 percentage points compared to H1 2023) respectively.

In H2 2023, market makers were the leading domestic institutions on NewConnect (41.1 percent of equity turnover) followed by firms [2] (28.8 percent) and other entities (18.3 percent).

Table 2. Investors structure on NewConnect in shares (%)

Source: GPW data based on Exchange Members' broker orders


Derivatives Market

Foreign investors were in the lead on the derivatives market in 2023 and generated a record-high share of 38 percent of turnover for a second consecutive year. Domestic retail investors generated 32 percent of the derivatives turnover volume in 2023, down by 2 percentage points year on year. Domestic institutions accounted for 30 percent of derivatives turnover in 2023, up by 3 percentage points year on year. The share of retail investors in options turnover increased by 1 percentage point year on year to 46 percent while foreign investors and domestic institutional investors accounted for 32 percent (-2 percentage points YoY) and 22 percent (+1 percentage point YoY) respectively. The share of foreign investors and retail investors in structured products turnover was 50 percent each.

Market makers were the leading domestic institutions in futures trading in H2 2023 with a share of 60.6 percent, followed by other entities (16.5 percent) and firms (13.8 percent). Market makers prevailed in options turnover with a share of 73.9 percent, followed by firms (26.0 percent). In H2 2023, firms were in the lead in structured products turnover (52.6 percent) followed by market makers (46.5 percent) and other entities (0.9 percent).

Table 3. Investors structure on the futures market (%)

Source: GPW data based on Exchange Members' broker orders

Table 4. Investors structure on the options market (%)

Source: GPW data based on Exchange Members' broker orders

Table 5. Investors structure on the structured products market (%)

Source: GPW data based on Exchange Members' broker orders

Catalyst

Bond turnover on Catalyst is dominated by domestic institutions which generated 63 percent of turnover in 2023, up by 4 percentage points year on year. Retail investors generated 36 percent of turnover (-4 pps YoY) while foreign investors generated 1 percent (the same as in 2022).

Table 6. Investors structure on the bond market (%)

Source: GPW data based on Exchange Members' broker orders

The detailed results of the survey concerning the share of investors in financial instruments turnover are published on the GPW website at: https://www.gpw.pl/analysis-investor-share-in-trading.

In presenting the data in 2021, GPW changed the method used to obtain data for calculating the share of investor groups in turnover on the exchange. Such information is now based on broker orders submitted to the Exchange's trading system. As a result, the method of aggregating and presenting data on the percentage share of domestic retail investors was modified. The information on the number of online accounts is sourced from surveys conducted by GPW among domestic brokerage houses. The information on the number of active investment accounts comes from the Exchange's trading system: it is the number of accounts for which at least one order was placed with GPW in the period under review.

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The Warsaw Stock Exchange Group (GPW Group) operates trading platforms for shares, Treasury and corporate bonds, derivatives, electricity and gas, and provides indices and benchmarks including WIBOR and WIBID. The index agent FTSE Russell classifies the Polish capital market as a Developed Market since 2018. The markets operated by the GPW Group are the biggest in Central and Eastern Europe. For more information, visit www.gpw.pl.

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[1] OTHER: Other institutions not classified in any other category, including n particular state institutions and enterprises, cooperatives, foundations, associations, local government units, as well as KDPW and transactions concluded on the basis of aggregated orders and pending allocation orders referred to in Article 2(3) of Commission Delegated Regulation (EU) 2017/580.

[2] FIRMS: Non-financial entities, i.e., companies and partnerships, as well as individuals conducting business activity, not included in any of the above categories.