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UK property swaps Q2 trade up 67% on year

UK commercial property derivatives trading hit £1.62 billion ($3.21 billion) in the Q2, a 67% gain on the same period last year, data from Investment Property Databank (IPD) showed on Friday.

“The substantial increase in year-on-year volumes reflects the continuing strength in the growth of the derivative market at a time of setbacks in both values and trading volumes in the physical market,” said Nick Scarles, group finance director of privately owned property firm Grosvenor.

IPD’s data was broadly in line with dealer expectations but 52% down on the Q1, typically the market’s strongest quarter of the year. IPD said a total of 302 trades were executed in the three months to end-June, surpassing the previous record of 283 transactions in the Q1 of 2008. It also said the total notional value of French property derivatives now exceeded £1 billion but that the European market was still UK-dominated. (Reuters)