Vaerdipapircentralen (VP), the Danish CSD, says that 2002 set a new record in fixed income transaction volumes in Denmark. However, considering that the stock market was so weak, it also settled a surprisingly high number of equity transactions.
The annual turnover of bonds book-entered reached a record high in 2002 of DKK 28,555 billion, or DKK 114 billion per business day. The previous record was set in 1998 with a turnover of DKK 28,287 billion. On December 20 2002, another record was set as the turnover of bonds hit DKK 341.1 billion.
In 2002, 67 per cent of the turnover of bonds was effected between two securities dealers. The remaining part of the turnover was executed mainly between securities dealers and their customers.
At the end of 2002, a total of 2,240 bond series were issued through VP compared to 2,277 at the end of 2001. This equals a nominal value of the circulating bonds of DKK 2,106 billion at the end of 2002 compared to 2,031 at the end of 2001.
VP says the turnover of shares book-entered in VP remained high in 2002 despite the fact that the year as a whole was characterised by a heavy decline in share prices. The nominal turnover of shares in 2002 was DKK 334 billion corresponding to DKK 1.3 billion per business day. VP’s turnover in shares has thus only slightly declined compared to 2000 that set record with a turnover of shares of DKK 340 billion. Since the middle of the 1990s, the turnover has more than quadrupled.
The turnover of shares is primarily effected between securities dealers and their customers. Only 14 per cent of the 2002 turnover took place between the securities dealers themselves, which is the same percentage as in 2001. However, this percentage has decreased significantly over the last year and reflects the growing interest among private and institutional investors in share investment.
At the end of 2002, a total of 821 share series were issued through VP compared to 812 at the end of 2001. This equals a nominal value of circulating shares of DKK 289 billion compared to DKK 251 billion in 2001.