Trading in shares and unit trust certificates rose sharply in 2007, setting a new record for the fifth year in a row.
Over the last five years, trading has more than tripled.
“2007 was another very good year in the stock market. We are very pleased about the strong increase in share trading and have chosen to recognise that increase through a substantial price reduction for the benefit of investors,” says Johannes Luef, CEO, VP. In 2007, the price for carrying out a share transaction was reduced by 33%, making VP the lowest-priced securities service centre in Europe.
The trading of shares and unit trust certificates registered with VP set a new record in the year under review. The nominal share trading in 2007 was DKK 814 billion, corresponding to DKK 3.4 billion per trading day. This represents a 15% increase over the previous record-setting trading volume from 2006. Over the last five years, share trading has more than doubled.
14% of the trading volume was between two stockbrokers. The remaining volume was generated between stockbrokers and their clients.
As opposed to shares, the trading of bonds registered with VP showed a small decline compared with 2006. The trading volume was DKK 26,609 billion, corresponding to DKK 107 billion per trading day. This represents a decline of 4% compared with the trading volume in 2006.
In 2007, 49% of the bond trading was between two stockbrokers. The remaining trading volume was generated between stockbrokers and their clients.
Also the total volume of securities trading handled by VP rose sharply in 2007. The increase of 32% to DKK 16.5 million was also a record-breaker. The latest record was from 2006. In particular, trading in shares and unit trust certificates represent this increase. The transactions are broken down into 15.1 million for trading of shares and unit trust certificates and 1.4 million for bond trading.
The statement of securities trading at VP represents the face value of the holdings moved from one account to another in VP’s registration system. This relates not only to securities that have been traded. The trading volume also includes securities that have been moved, e.g. in connection with repo-based loan facilities or pledging.