ABSTRACT We examine global trading activity over 15 years and compare trends across countries. We find that European volume has grown, but less than in other countries, while turnover ratios have declined. However, the decline is exaggerated in standard volume data, which focuses on primary market trading, and becomes comparable after adjusting North American data. Overall, we observe a universal decrease in primary market turnover ratios accompanied by declining stock volatility; the European decline is significant, though smaller than in the United States. This decline has taken place in a context of low forward‐looking volatility and yield spreads, which mitigated the decline.
Penalva et al. (Mon,) studied this question.