In the week following the announcement of the trade (tariff) truce between the United States and European Union, secondary market trade increased by over 50% by value and 65% by volume on the previous week.
The number of trades initiated by US buyers rose 158% week on week. The suspension of the tariffs also gave weekend activity a boost – resulting in a fourfold increase in trade by value compared to the start of the year.
We’ve already written about the reasons behind this renewed interest and its reflection on regional market share (i.e. Bordeaux and the Rhone seeing a significant uplift in demand; Italy and Burgundy being the prime benefactors of weekend trade). But less so, on the quiet facilitator supporting this record-breaking increase in activity – automation.
Automation through APIs has enabled a seamless trading experience, contributing to rising activity on the exchange by both volume and value. APIs accelerate everything from price discovery to buying and selling. Automation has allowed collectors to purchase wines offered on the exchange through their merchant’s platforms 24/7. Conversely, it has enabled merchants to expand their sales outside their working hours, resulting in more weekend trade (as seen in the chart above).
The number of automated trades has been on the rise in recent months, hitting a record 42% of all trade at the end of January. Automation is supporting and creating a more robust secondary market environment, one that has additionally fuelled rising trade since the suspension of the US tariffs.
How exactly does automation work, and how can it help your business?