The document analyzes retail trades on the London Stock Exchange in 2013. It provides data on monthly retail trading volumes for 11 market segments, such as the FTSE 100 and FTSE 250 indexes. Total retail trades in 2013 were 13.1 million, a 19.5% increase from 2012. Trading increased substantially in small caps (47.8%) and exchange traded funds (29.4%), while AIM trading declined slightly (-3.1%). The data and commentary suggest retail investors exhibited more risk appetite and diversification in 2013 compared to 2012.

1. Retail Investor Trading
2013

2. Trade Analysis
ComPeer’s Trade Analysis Report provides a monthly analysis of retail
trades. The data is provided to ComPeer Limited by the London Stock
Exchange in order that a view of the retail market can be formed and
disseminated. Retail trades in this context are the result of:
a) The self directed trades of clients of Execution Only firms
b) The advised trades of clients of Advisory and Discretionary firms
c) Trades executed by Discretionary firms on behalf of their discretionary
clients.
d) Trades initiated, primarily by Execution Only firms, on behalf of Firms
that are not members of the LSE.
e) The following table provides a summary of retail trades for 2013
analysed by eleven LSE segments: FTSE100, FTSE250 etc.

3. Trade Analysis Data for 2013
Market
FTSE100
FTSE250
Small cap
AIM
ETFs
ETCs
Bonds
Products
Int
Equities
Gilts
Rest
Total
Jan-13
444,134
255,383
147,886
287,305
36,004
10,644
10,630
1,219
7,712
6,747
11,034
1,218,698
Feb-13
400,453
222,237
138,138
258,075
33,317
11,980
8,720
1,157
6,255
5,600
11,649
1,097,581
Mar-13
469,567
248,828
156,815
237,347
39,726
10,961
10,196
1,032
7,563
6,465
11,996
1,200,496
Apr-13
444,288
265,279
118,964
187,800
42,377
16,657
11,582
1,152
6,565
6,496
9,976
1,111,136
May-13
469,500
269,020
119,419
187,923
43,653
10,244
14,528
1,303
7,337
5,842
9,109
1,137,878
Jun-13
380,427
200,949
102,459
148,822
42,069
8,963
13,730
1,485
5,907
5,379
8,546
918,736
Jul-13
400,721
229,274
105,157
168,263
35,628
8,059
10,479
1,353
6,209
5,400
9,798
980,341
Aug-13
443,725
245,810
125,983
291,143
32,783
8,621
8,860
1,481
7,544
5,279
9,558
1,180,787
Sep-13
387,226
199,992
124,948
272,171
28,294
6,860
8,088
1,202
7,307
4,819
7,381
1,048,288
Oct-13
442,119
225,325
287,977
274,974
33,974
6,450
9,398
1,358
8,143
4,732
7,768
1,302,218
Nov-13
371,443
212,869
154,845
276,677
27,351
5,725
9,921
795
7,364
4,082
7,156
1,078,228
Dec-13
311,746
178,693
98,999
209,884
26,623
5,010
6,828
1,007
4,992
3,722
5,050
852,554
Total 2013
4,965,349
2,753,659
1,681,590
2,800,384
421,799
110,174
122,960
14,544
82,898
64,563
109,021
13,126,941
Total 2012
4,143,882
2,034,709
1,137,948
2,891,339
325,913
124,048
90,245
13,575
52,519
63,170
108,732
10,986,089
% Change
19.8%
35.3%
47.8%
-3.1%
29.4%
-11.2%
36.3%
7.1%
57.8%
2.2%
0.3%
19.5%

4. Commentary
•
Retail trading on the whole is in rude health!
•
Total trades increase 19.5% between 2012 and 2013 signifying a clear bull
market for retail investors
•
Interesting contrast between small cap trading (up a remarkable 47.8%) and AIM
trading (down 3.1%). Are investors shying away from risk in these rapidly
recovering equity markets?
•
Strong growth in ETFs, bonds and international equities all point to retail investor
appetite for diversification and confidence in world markets.
•
Poor performance from ETCs and gilts bolster the view that confident investors
are relying less on safer commodities and government bonds.
•
October the strongest month across trade segments, despite an escalation of the
conflict in Syria, a U.S Government shut-down and the freezing of NASDAQ.
Could it be that the IPO of Royal Mail and the announcement of Twitter’s flotation
assuaged the fears of investors?