Trading Tides: H1 2025 in Review
In this latest installment in our Trading Tides series, we sat down with Head of Markets & Surveillance at the Luxembourg Stock Exchange (LuxSE), Guy Weymeschkirch, to get his insights on what H1 2025 looked like in terms of trading and our retail-sized bond trading window, LuxXPrime.
Obviously, this shift is tied to the European Central Bank’s decision to lower interest rates, which naturally made bonds somewhat less attractive due to declining yields. At the same time, we saw a strong shift towards equities, with equity market activity at the exchange rising by more than 40% year-on-year, indicating renewed risk appetite in a more stable rate environment.
All in all, despite the slowdown in bond trading, total trading activity at LuxSE increased by 21% in terms of trades and 18% in terms of overall volume compared to this time last year, while the average trade size went up by 27%.
At LuxSE, while the overall number of bond trades has seen a slight decrease compared to this time last year, trades specifically within the sustainable bond space saw a 34% increase.
These figures clearly show that investor interest in green, social, sustainability and sustainability-linked bonds (GSSS) remains strong, even in a shifting market environment. The continued growth in GSSS bond trading reflects a structural shift in investor priorities, where transparency, impact, and purpose are becoming as important as performance. This momentum is likely to accelerate as regulatory frameworks evolve and capital flows towards sustainable outcomes.
The addition of Banca Sella in 2024 and Equita SIM in 2025 as Prime Liquidity Providers marks a significant step forward in enhancing the LuxXPrime retail bond trading offering. Most notably, it has expanded the universe of securities available, introducing more diversity in terms of bond types and structures. Investors now benefit from greater access to perpetual bonds issued by corporates and banks, bonds from supranationals in emerging market currencies, and a broader range of government securities, helping them meet a wider range of investment needs. It has also provided more depth and reliability to the firm prices available on the orderbook of LuxXPrime.
As of today, LuxXPrime features over 2,070 bonds from more than 430 issuers across 50 countries. This includes more than 800 sovereign, sub-sovereign, and agency bonds, along with over 350 GSSS bonds —reflecting both the platform’s depth and its relevance in today’s evolving fixed-income landscape.
LuxXPrime is fully aligned with this vision. Its mission is to promote greater financial participation across Europe by making bond investment more accessible, inclusive and efficient. In doing so, it helps to build deeper and more resilient capital markets.
At the same time, equities are gaining traction, with improving economic sentiment making stocks increasingly appealing to investors. This shift may weigh on fixed-income demand in the short term, particularly among retail participants.
How would you describe bond trading activity during the first half of 2025?
Overall, bond trading volumes were slightly down compared to the same period last year. However, the wider picture remains dynamic as the average size of individual trades increased, suggesting that despite the lower number of transactions, investors were making more significant moves.Obviously, this shift is tied to the European Central Bank’s decision to lower interest rates, which naturally made bonds somewhat less attractive due to declining yields. At the same time, we saw a strong shift towards equities, with equity market activity at the exchange rising by more than 40% year-on-year, indicating renewed risk appetite in a more stable rate environment.
All in all, despite the slowdown in bond trading, total trading activity at LuxSE increased by 21% in terms of trades and 18% in terms of overall volume compared to this time last year, while the average trade size went up by 27%.
In your view, how is the continued focus on sustainability influencing trading dynamics in the GSSS bond space?
Sustainability is no longer a niche theme – it’s a fundamental part of modern capital markets and a key driver in bond trading activity.At LuxSE, while the overall number of bond trades has seen a slight decrease compared to this time last year, trades specifically within the sustainable bond space saw a 34% increase.
These figures clearly show that investor interest in green, social, sustainability and sustainability-linked bonds (GSSS) remains strong, even in a shifting market environment. The continued growth in GSSS bond trading reflects a structural shift in investor priorities, where transparency, impact, and purpose are becoming as important as performance. This momentum is likely to accelerate as regulatory frameworks evolve and capital flows towards sustainable outcomes.
LuxXPrime recently onboarded two Prime Liquidity Providers, Equita SIM and Banca Sella. What impact has this had on bond market liquidity and trading efficiency?
The addition of Banca Sella in 2024 and Equita SIM in 2025 as Prime Liquidity Providers marks a significant step forward in enhancing the LuxXPrime retail bond trading offering. Most notably, it has expanded the universe of securities available, introducing more diversity in terms of bond types and structures. Investors now benefit from greater access to perpetual bonds issued by corporates and banks, bonds from supranationals in emerging market currencies, and a broader range of government securities, helping them meet a wider range of investment needs. It has also provided more depth and reliability to the firm prices available on the orderbook of LuxXPrime.
As of today, LuxXPrime features over 2,070 bonds from more than 430 issuers across 50 countries. This includes more than 800 sovereign, sub-sovereign, and agency bonds, along with over 350 GSSS bonds —reflecting both the platform’s depth and its relevance in today’s evolving fixed-income landscape.
What role do you see retail‑sized bond trading playing in broadening market access and participation?
Retail-sized bond trading plays a vital role in making capital markets more accessible. By offering bonds in smaller denominations and ensuring greater price transparency, it lowers the traditional barriers to entry, making fixed income investing more accessible to individual investors. This shift empowers savers to become active participants in financial markets, which is a key goal of the Capital Markets Union (CMU) and the Savings and Investment Union (SIU).LuxXPrime is fully aligned with this vision. Its mission is to promote greater financial participation across Europe by making bond investment more accessible, inclusive and efficient. In doing so, it helps to build deeper and more resilient capital markets.
What major trends do you foresee shaping the bond trading landscape for the second part of 2025?
In the second half of 2025, the bond trading landscape will continue to be shaped primarily by interest rate dynamics. Rates remain the key determinant of bond attractiveness, directly influencing yields, pricing, and overall market activity.At the same time, equities are gaining traction, with improving economic sentiment making stocks increasingly appealing to investors. This shift may weigh on fixed-income demand in the short term, particularly among retail participants.
