ESMA call for evidence on the market structure of European equity markets

The European Securities and Markets Authority (ESMA) has launched a call for evidence on the structure of European equity markets, presenting an analysis of trends between 2022 and 2025 based on transaction data reported under the Markets in Financial Instruments Regulation (MiFIR). ESMA's analysis suggests that equity markets continue to function well overall, with stable levels of addressable liquidity and on book trading, although it notes a decline in lit continuous trading that has been offset by greater use of other trading mechanisms, including closing auctions, frequent batch auctions and systematic internaliser trading. The analysis also covers how liquidity is allocated across different trading mechanisms on a country by country basis.

ESMA invites stakeholder input on a broad range of topics including: (i) ESMA's understanding of the trading landscape; (ii) identified trends in relation to on- and off-book trading, and addressable and non-addressable liquidity; (iii) price formation; (iv) attractiveness and choice of venues; (v) dedicated questions on dark trading and 24-hour (or extended-hour) trading; (vi) growing use of benchmark transactions; and (vii) member preferencing. The call for evidence also confirms that ESMA has decided to repeal the Q&A which states that periodic auctions are subject to the tick size regime.

The deadline for responses is 30 June, with a feedback statement expected in the second half of the year.

Return to main website.