The European market structure has changed in an important manner during the observed period. The important decrease in trading volumes observed after 2021 linked to the impact of the UK withdrawal was accompanied by four main changes:  

1. a decrease in the number of trading infrastructures, even though their number remains elevated;  

2. a shift in share trading distribution, both in terms of market types and countries,  

3. a concentration of trading in a few EU countries and trading venues;  

4. a relocation of domestic trading activities; and a rise in the specialisation of trading venues.  

Background 

This topic is of relevance to ESMA in terms of both its financial stability and orderly markets mandate, since competition among trading venues can lead to more innovative services and lower fees, but a fragmented trading landscape can also impact market liquidity. In this sense, assessing the evolution of the European market structure in the recent transformative years is key to “improve the level-playing field between execution venues”, which is one of the three priority areas for the Review of the Regulation governing rules about the structure of the markets in financial instruments (MiFIR Review).

TRV Article - Evolution of EEA share market structure since MiFID II