- Spectrum's SERIX sentiment index for Euro against British Pound reached 117 points
- Meanwhile SERIX sentiment for the Pound against Japanese Yen hit 95 and remained close to neutral against US Dollar
- SERIX data reflects retail investor sentiment following recent Bank of England rates decisions
Spectrum Markets (“Spectrum”), the pan-European trading venue for financial instruments, has published its SERIX sentiment data for European retail investors for March, revealing generally bearish trading behaviour towards the British Pound when compared to benchmark currencies such as the Euro and Japanese Yen in particular.
Spectrum saw the sentiment for Euro against the Pound reach 117 points, a high not seen since October 2021. Meanwhile, SERIX sentiment for the Pound against the Japanese Yen hit 95 and remained close to neutral against the US Dollar at 101, indicating a cautious stance among European retail investors towards the British currency.
The SERIX value indicates retail investor sentiment, with a number above 100 marking bullish sentiment, and a number below 100 indicating bearish sentiment. (See below for more information on the methodology).
Market opinion
“The current lack of positive sentiment towards the Pound can be attributed to a combination of factors, including persistently high inflation, which is falling slightly but not yet enough for the Bank of England to cut interest rates”, says Michael Hall, Head of Distribution at Spectrum Markets.
“Meanwhile, the UK’s central bankers are once again somewhat more united in their monetary policy stance. Eight of the nine monetary policymakers were in favour of stable interest rates, with only one central banker voting in favour of an immediate interest rate cut. At the previous meeting, two members had spoken out in favour of raising interest rates, while one voted in favour of easing. The inconsistent voting behaviour had caused confusion about the future direction.”, adds Michael Hall.
Spectrum’s March data
In March 2024, order book turnover on Spectrum was €213.2 million, with 35.3% of trades taking place outside of traditional hours (i.e., between 17:30 and 9:00 CET).
72% of the order book turnover was on indices, 2.9% on currency pairs, 10.7% on commodities, 6.4% on equities and 8% on cryptocurrencies, with the top three traded underlying markets being DAX 40 (23.5%), NASDAQ 100 (21.8%), and DOW 30 (12.3%).
Looking at the SERIX data for the top three underlying markets, the DAX 40 sentiment increased slightly from 93 to 95. Similarly, the NASDAQ 100 increased slightly from 96 to a neutral 100 and the DOW 30 remained at a bearish 99.
Calculating SERIX® data
The Spectrum European Retail Investor Index (SERIX®), uses trading venue's pan-European trading data to shed light on investor sentiment towards current development in financial markets.
The index is calculated on a monthly basis by analysing retail investor trades placed and subtracting the proportion of bearish trades from the proportion of bullish trades, to give a single figure (rebased at 100) that indicates the strength and direction of sentiment:
SERIX® = (% bullish trades - % bearish trades) + 100
Trades where long instruments are bought and trades where short instruments are sold are both considered bullish trades, while trades where long instruments are sold and trades where short instruments are bought are considered bearish trades. Trades that are matched by retail clients are disregarded. (For a detailed methodology and examples, please visit this link).
About Spectrum Markets
Spectrum Markets is a pan-European trading venue for financial instruments aimed at financial institutions and their retail investors. Headquartered in Frankfurt am Main, Germany, and with presence across Europe, Spectrum Markets was designed for transparency, integration and openness while enabling unparalleled access to the markets beyond traditional trading hours with 24/5 on-venue trading for the first time in Europe.
Since launch in August 2019, financial instruments listed on Spectrum Markets have been made available for retail trading in Germany, Italy, France, Spain, Sweden, Norway, the Netherlands, Ireland and Finland.
Acting as a MiFID II regulated trading venue authorised and supervised by BaFin, Spectrum Markets uses a uniquely open architecture, allowing intermediaries and product providers to offer to retail investors a unique trading experience with increased choice, control and stability.
Being an MTF (Multilateral Trading Facility), Spectrum Markets provides access to innovative products designed to give European retail traders flexibility and control over their trades. This includes Turbo24, the world’s first 24-hour turbo warrant.
Through the pan-European ISIN, 24/5 trading services, intraday issuance and a fully proprietary venue, Spectrum Markets enables a guaranteed baseline level of liquidity over a range of products, is able to swiftly and safely match a significant number of orders, and to process messages with a low latency.
Spectrum Markets publishes SERIX® – the Spectrum European Retail Investor Index – a pan-European client sentiment that informs as to whether retail investors have taken exposure on a bullish or bearish view on a specific underlying. SERIX® is a measure based on trades made by retail investors across Europe which can be used to compare how sentiment has changed (in terms of directionality or strength of sentiment) over time on a monthly basis.
Spectrum Markets is a wholly owned subsidiary of IG Group (LSEG: IGG).
Further information can be found at spectrum-markets.com
Media contact
Liminal
T: +44 203 778 1103
E-Mail: vasiliki@liminalcomms.com
Disclaimer
All information contained herein is for information purposes only and addresses exclusively Members of Spectrum Markets and persons interested in becoming a Member of Spectrum Markets. Nothing herein constitutes an offer to sell or a solicitation of an offer to purchase any financial instrument(s) listed on Spectrum Markets or any product described herein. Spectrum Markets does not provide financial services, such as investment advice or investment brokerage. Prospective retail investors can trade such products only with their brokers. The information herein does not constitute investment advice or an investment recommendation. Any information provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it.
