Analysis of the Behaviour of Retail Investors in the Financial Markets during the COVID-19 Crisis

50 Pages Posted: 24 Oct 2022

See all articles by Guillermo Cambronero Pérez

Guillermo Cambronero Pérez

Comisión Nacional del Mercado de Valores (CNMV)

Gloria Ruiz Ruiz Suárez

Comisión Nacional del Mercado de Valores (CNMV)

Date Written: February 21, 2022

Abstract

This paper describes the development in trading by retail investors in the securities market in 2019 and 2020 to identify possible changes in times of heightened uncentainty of the crisis. This article is the first that the CNMV has carried out focusing on this type of analysis and it highlights the significant increase in trading by natural persons in the context of the crisis. The increase in trading was due to the sharp rise in the number of trades executed of a smaller size, together with an extraordinary increment in the number of new investors. The abrupt movements in equity prices in 2020, together with the easy access to trading on markets deriving from the use of new technologies were the catalyst of this process, The results contained in this article are accompanied by the publication of an interactive web-based dashboard, which can be accessed by all users using any electronic device.

Keywords: Retail Investors, COVID-19, trading

JEL Classification: A10, G11, G01

Suggested Citation

Cambronero Pérez, Guillermo and Ruiz Suárez, Gloria Ruiz, Analysis of the Behaviour of Retail Investors in the Financial Markets during the COVID-19 Crisis (February 21, 2022). CNMV Working Paper No. 78, 2022, Available at SSRN: https://ssrn.com/abstract=4253635 or http://dx.doi.org/10.2139/ssrn.4253635

Guillermo Cambronero Pérez

Comisión Nacional del Mercado de Valores (CNMV)

Gloria Ruiz Ruiz Suárez (Contact Author)

Comisión Nacional del Mercado de Valores (CNMV)

C/ Miguel Ángel, 11
Madrid, Madrid 28010
Spain

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