ESMA launches a call for evidence on the structure of European equity markets
The European Securities and Markets Authority, ESMA, has launched a call for evidence concerning the structure of European equity markets. This initiative is based on a data-driven analysis of trading activity between 2022 and 2025, utilizing MiFIR transaction reporting data. The overall assessment indicates that European equity markets are functioning well, with addressable liquidity remaining stable at approximately 85% of total trading. On-book trading also showed relative stability, comprising around 75-80% of trading volume. However, ESMA has observed a decrease in lit continuous trading during the analyzed period. This decline has been compensated by increased activity in other trading methods, notably closing auctions, frequent batch auctions, and systematic internaliser (SI) trading. The analysis further investigates the country-specific allocation of liquidity across various trading mechanisms. ESMA is seeking stakeholder input on the concept of addressable liquidity and its current treatment under RTS 1, including potential adjustments to post-trade transparency flagging. Additionally, ESMA clarified that periodic auctions are subject to the tick-size regime. Stakeholders are invited to submit their views by June 30, 2026, with a feedback statement to follow later in the year. ESMA will continue to monitor market developments, considering recent MiFIR modifications and various trading mechanisms.
