Stock trading collapsing globally

Share trading should collapse and then flat-line at the end of a major bear market because the public reaches peak negativity with regards to stocks. This sentiment hardens and it takes years for interest in stocks to return.
Stock Market Self-Cannibalization To Continue As Volume Implosion Accelerates
As Securities Technology reports, the NYSE Euronext reports daily volume of trading stocks down 16.9% from a year ago (and down 17.8% YTD compared to last year) and down 9.9% from June alone. Trading in stocks on its exchanges in Europe were also down 12.3%. This plunge in stock trading has knocked into the derivative markets which have seen a massive 15.8% cliff-dive worldwide from June to July.

One more nail statistic in the coffin of CNBC's audience is a 29.7% drop in ETF transactions year-over-year and NYSE/Arca/MKT's share of trading in NYSE-listed stocks is down 34.3% from a year ago as the dark pools rise.

With volumes collapsing it is only likely that we will see far more 'incidents' such as Knight - where companies whose top-line explicitly stems from flow trading - increasingly find themselves redundant; whether or not this is due to a self-inflicted algo, or other, potentially more sinister, reasons.

Only 4.12% of A-shares accounts were active last week, a new low this year. (交易账户仅占4.12%开户数由升转降 A股账户活跃度创新低)

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