16
2012 Market Segmentation Survey Grégoire Naacke 5 November 2013
2012 Market Segmentation Survey
Grégoire Naacke
5 November 2013
2 2012 Market Segmentation Study 5 November 2013
Introduction
This survey is being conducted since 2007.
The domestic market capitalization was broken down in four segments
according to thresholds. The same threshold levels were kept for the last
5 surveys for consistency reasons. The segments were defined as
follows:
• Large market cap segment : market cap > USD 1.3 bn
• Mid market cap segment : USD 1.3 bn > market cap > USD 200 m
• Small market cap segment : USD 200 m > market cap > USD 65 m
• Micro market cap segment : market cap < USD 65 m
3 2012 Market Segmentation Study 5 November 2013
Exchanges were asked to distribute their domestic market cap, number
of domestic listed companies, EOB trading value and EOB number of
trades into these 4 segments.
Since 2008, an important change in the methodology has been
introduced: only EOB trading is now considered while total trading was
used for the first survey.
Companies delisted during the year were excluded.
In market capitalization, number of companies, EOB trading value and
number of trades: Main board + SMEs/Alternative markets data are
consolidated.
Methodology
4 2012 Market Segmentation Study 5 November 2013
Overview of other existing thresholds
Micro Micro Micro
MicroSmall SmallSmall
Small
Mid Mid
Mid
SMEs
SMEs
Large Large
Large
Large
Large
0
200
400
600
800
1 000
1 200
1 400
1 600
WFE Market Seg. FESE Market Seg. FESE SME WG United States Esma SMSG European Parl.
Micro Small Mid Large
- United States = Generally accepted definition in the United Sates
- SMSG = Securities and Markets Stakeholder Group
- European Parliament = Directive of the European parliament and of the council on markets in financial instruments repealing Directive 2004/39/EC of
the European Parliament and of the Council
http://www.europarl.europa.eu/sides/getDoc.do?pubRef=-//EP//TEXT+TA+P7-TA-2012-0406+0+DOC+XML+V0//EN#BKMD-7
5 2012 Market Segmentation Study 5 November 2013
Received answers The study is based on 51 answers received from the following members in 2013.
All the indicators are not available for every member and for each year. On each graph the excluded members
are mentioned.
• BM&FBOVESPA
• Bolsa de Comercio de Buenos Aires
• Bolsa de Comercio de Santiago
• Bolsa de Valores de Colombia
• Bolsa de Valores de Lima
• Bolsa Mexicana de Valores
• NASDAQ OMX US
• NYSE Euronext US
• TMX Group Inc.
Americas (9) Asia – Pacific (17)
• Australian Securities Exchange
• Bombay Stock Exchange
• Bursa Malaysia
• Colombo Stock Exchange
• GreTai Securities Market
• Hong Kong Exchanges and Clearing
• Indonesia Stock Exchange
• Korea Exchange
• National Stock Exchange of India
• Osaka Securities Exchange + Jasdaq
• Philippine Stock Exchange
• Shanghai Stock Exchange
• Shenzhen Stock Exchange
• Singapore Exchange
• Stock Exchange of Thailand
• Taiwan Stock Exchange
• Tokyo Stock Exchange Group
EMEA (25)
• Abu Dhabi Securities Exchange
• Amman Stock Exchange
• Athens Exchange
• BME Spanish Exchanges
• Bourse de Casablanca
• Bourse de Luxembourg
• Budapest Stock Exchange
• Cyprus Stock Exchange
• Deutsche Börse
• Irish Stock Exchange
• Istanbul Stock Exchange
• Johannesburg Stock Exchanges
• Ljubljana Stock Exchange
• London Stock Exchange Group
• Malta Stock Exchange
• Muscat Securities Market
• NASAD OMX Nordic
• NYSE Euronext Europe
• Oslo Børs
• Saudi Stock Exchange (Tadawul)
• SIX Swiss Exchange
• Stock Exchange of Mauritius
• Tel-Aviv Stock Exchange
• The Egyptian Exchange
• Wiener Börse
6 2012 Market Segmentation Study 5 November 2013
General
overview
7 2012 Market Segmentation Study 5 November 2013
Market segments in 2012
Micro-cap account for half of the total number of listed companies.
The weight of mid-cap in number of trades remains important especially
in Asia-Pacific region.
Weight of each market segment in:
Excluding: TMX Group Inc. and Abu Dhabi Securities Exchange
Large12%
Mid22%
Small16%
Micro50%
Number of listed companies
Large62%
Mid26%
Small6%
Micro6%
Number of trades
Large89%
Mid9%
Small & Micro2%
Market Capitalization
Large86%
Mid11%
Small & Micro3%
Share trading value
8 2012 Market Segmentation Study 5 November 2013
Market segments in 2012 by region Weight of each market segment by region in:
Americas
Asia-Pacific
EAME
Excluding: : TMX Group Inc. and Abu Dhabi Securities Exchange
Large31%
Mid31%
Small16%
Micro22%
Number of listed companies
Large85%
Mid13%
Small1%
Micro1%
Number of trades
Large94%
Mid5%
Small & Micro1%
Market Capitalization
Large95%
Mid5%
Small & Micro0%
Share trading value
Large9%
Mid23%
Small17%
Micro51%
Number of listed companies
Large43%
Mid37%
Small10%
Micro10%
Number of trades
Large82%
Mid15%
Small & Micro3%
Market Capitalization
Large65%
Mid28%
Small & Micro7%
Share trading value
Large10%
Mid15%
Small13%
Micro62%
Number of listed companies
Large77%
Mid14%
Small4%
Micro5%
Number of trades
Large91%
Mid7%
Small & Micro2%
Market Capitalization
Large91%
Mid7%
Small & Micro2%
Share trading value
9 2012 Market Segmentation Study 5 November 2013
Number of domestic listed companies Relative stability of the breakdown between 2011 and 2012.
With TMX Group, the share of Micro-cap in Americas would be 44%.
Excluding: : TMX Group Inc. and Abu Dhabi Securities Exchange
11%
21%16%
52%
12%
22%
16%
50%
0%
10%
20%
30%
40%
50%
60%
Large Mid Small Micro
Total WFE
2011
2012
28%31%
17%
24%
31% 32%
16%
22%
0%
10%
20%
30%
40%
50%
60%
Large Mid Small Micro
Americas
2011
2012
8%
22%16%
53%
9%
23%
17%
51%
0%
10%
20%
30%
40%
50%
60%
Large Mid Small Micro
Asia-Pacific
2011
2012
9%15% 13%
63%
10%15% 13%
62%
0%
10%
20%
30%
40%
50%
60%
70%
Large Mid Small Micro
EAME
2011
2012
10 2012 Market Segmentation Study 5 November 2013
Domestic market capitalization Large cap account for 89% of the market capitalization.
In Asia-Pacific region the weight of Shenzhen Stock Exchange leads to a
significant higher share of mid-cap.
Excluding: : TMX Group Inc. and Abu Dhabi Securities Exchange
88%
10%2% 1%
89%
9%1% 1%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Large Mid Small Micro
Total WFE
2011
2012
94%
5%1% 0%
94%
5%1% 0%
0%
20%
40%
60%
80%
100%
Large Mid Small Micro
Americas
2011
2012
80%
16%
3% 1%
82%
15%
3% 1%0%
20%
40%
60%
80%
100%
Large Mid Small Micro
Asia-Pacific
2011
2012
90%
8%2% 1%
91%
7%1% 1%
0%
20%
40%
60%
80%
100%
Large Mid Small Micro
EAME
2011
2012
11 2012 Market Segmentation Study 5 November 2013
Parallel evolution of Num. Co. and M. Cap
The decreasing number of micro cap was mainly explained by threshold
effects.
Total number of listed
companies between
2011 and 2012
Americas -0.9%
Asia-Pacific +0.5%
EAME -2.4%
0
5
10
15
20
0
200
400
600
800
1000
1200
1400
1600
1800
2011 2012
Americas
Nu
mb
er
of
liste
d c
om
pan
ies
Mark
et C
ap
ita
liza
tio
n(t
rilli
on U
SD
)
0.0
5.0
10.0
15.0
20.0
0
2000
4000
6000
8000
10000
12000
14000
2011 2012
Asia-Pacific
Nu
mb
er
of
liste
d c
om
pan
ies
Mark
et C
ap
ita
liza
tio
n(t
rilli
on U
SD
)
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
0
1000
2000
3000
4000
5000
6000
7000
8000
2011 2012
EAME
Nu
mb
er
of
liste
d c
om
pan
ies
Mark
et C
apitaliz
ation
(trilli
on U
SD
)
12 2012 Market Segmentation Study 5 November 2013
Evolution over the last five years
Total number of listed
companies between
2008 and 2012
Americas -4.4%
Asia-Pacific +9.4%
EAME -14.3%
0
3
6
9
0
500
1000
1500
2000
2500
3000
3500
4000
4500
5000
2008 2012
Americas
Num
ber
of
liste
d c
om
panie
s
Mark
et C
apitaliz
ation
(trilli
on U
SD
)
0.0
5.0
10.0
15.0
20.0
0
2000
4000
6000
8000
10000
12000
2008 2012
Asia-Pacific
Num
ber
of
liste
d c
om
panie
s
Mark
et C
apitaliz
ation
(trilli
on U
SD
)
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
0
1000
2000
3000
4000
5000
6000
2008 2012
EAME
Num
ber
of
liste
d c
om
panie
s
Mark
et C
apitaliz
ation
(trilli
on U
SD
)
13 2012 Market Segmentation Study 5 November 2013
Number of trades Large cap were slightly less affected by the decrease of number of trades
(-11%) than mid (-17%) and small cap (-16%)
The share of large cap in EOB trades increased in all the regions. The
opposite trend was observed last year.
Excluding: TMX Group Inc., Abu Dhabi Securities Exchange, Bolsa de Comercio de Buenos Aires, Korea Exchange, Osaka Securities Exchange and Tokyo Stock Exchange.
85%
13%
2% 0%
88%
11%
1% 0%0%
20%
40%
60%
80%
100%
Large Mid Small Micro
Americas
2011
2012
44%
34%
11% 11%
54%
35%
6% 5%
0%
20%
40%
60%
80%
100%
Large Mid Small Micro
Asia-Pacific
2011
201275%
13%5% 7%
77%
14%4% 5%
0%
20%
40%
60%
80%
100%
Large Mid Small Micro
EAME
2011
2012
0
5
10
15
20
2008 2009 2010 2011 2012
Evolution of the number of EOB trades from 2008 to 2012 (billions of trades)
EAME
Asia Pacific
Americas
61%
27%
6% 5%
62%
26%
6% 6%
0%
10%
20%
30%
40%
50%
60%
70%
Large Mid Small Micro
Total WFE
2011
2012
14 2012 Market Segmentation Study 5 November 2013
Value of share trading Similar trend in monetary terms: -15% for large cap compared to -25% for
mid cap and -20% for small cap.
Excluding: TMX Group Inc., Abu Dhabi Securities Exchange
85%
13%
2% 1%
86%
11%
2% 1%0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Large Mid Small Micro
Total WFE
2011
2012
94%
6%0% 0%
95%
4%0% 0%
0%
20%
40%
60%
80%
100%
Large Mid Small Micro
Americas
2011
2012 64%
30%
4% 2%
65%
28%
4% 3%
0%
20%
40%
60%
80%
100%
Large Mid Small Micro
Asia-Pacific
2011
2012
91%
6%2% 1%
91%
7%2% 1%
0%
20%
40%
60%
80%
100%
Large Mid Small Micro
EAME
2011
2012
15 2012 Market Segmentation Study 5 November 2013
Average number of trades Decrease in 2012 for all the segments but micro caps.
All the regions experienced quite similar trends.
1 725
402
12631
312
1 410
324
105 33
275
0
200
400
600
800
1 000
1 200
1 400
1 600
1 800
2 000
Large Mid Small Micro TOTAL
Total WFE
2011
2012
3 045
482
134 27
1 039
2 435
35680 19
877
0
500
1 000
1 500
2 000
2 500
3 000
3 500
Large Mid Small Micro TOTAL
Americas
2011
2012
1 301
485
16345
267
1 120
394
13950
243
0
200
400
600
800
1 000
1 200
1 400
Large Mid Small Micro TOTAL
Asia Pacific
2011
2012
689
7530 10
82
561
6724 5
73
0
100
200
300
400
500
600
700
800
Large Mid Small Micro TOTAL
EAME
2011
2012
16 2012 Market Segmentation Study 5 November 2013
Focus on largest exchanges Americas
Asia-Pacific
EAME
2 879
412
129 34
595
2 352
31088 24
516
Large Mid Small Micro TOTAL
Nasdaq 3 548
741
25744
2 064
2 845
541
132 34
1 698
Large Mid Small Micro TOTAL
NYSE874
9915 31
307
1 093
145
14 7
418
Large Mid Small Micro TOTAL
BM&FBOVESPA
86
16
3 0
21
128
16
1 0
33
Large Mid Small Micro TOTAL
Others
