25 November 2020

ESMA: EU securities markets - ESMA Annual Statistical Report

ESMA presents its first statistical report on European securities markets.. using new regulatory data sources to provide for the first time a comprehensive overview of the EEA markets, including the number, characteristics and volumes traded of the instruments offered to trade by EEA trading venues.

Market monitoring

Securities market: Combining equities and bonds, European securities are traded on 430 trading venues (TVs) registered in the EEA at the end of 2019: 135 regulated markets, 223 multilateral trading facilities and 72 organised trading facilities. In addition, there were 216 systematic internalisers (SIs), with an increase of 47 SIs since the beginning of 2019. In 2019, the total number of transactions in equity markets amounted to 1.7bn, compared to 19mn in bond markets. Trading volumes in the EEA amounted to EUR 27tn in equity markets and EUR 101tn in bond markets. Whereas most transactions took place on-exchange (88% for equity and 66% for bond markets), the volumes of these transactions only amounted to 53% for equity and 24% for bonds.

Equity market: As of end-2019, 28,000 equity and equity-like instruments were available for trading in the EEA, accounting for trading volumes of EUR 27tn. Shares dominated the trading landscape, with 89% of equity trading volumes. The total market capitalisation of shares issued by EEA-domiciled corporations amounted to EUR 16tn, with the highest capitalisations in the UK (26%), Germany (23%) and France (18%). Trading volumes of ETFs have grown, amounting to 10% of total trading in equity markets in 2019 (up from 6% in 2018), with ETF issuance largest in Luxembourg and Ireland. Half of trading volumes of equity instruments was on-exchange in 2019, while 53% of volumes occurring on RMs and MTFs, and off-exchange trading continues to be significant, with a large amount of trading OTC (26%) and on SIs (21%). Since MiFID II, an increasing amount of trading has not been subject to real-time pre-trade transparency, up from 22% in January 2018 to 38% in December 2019.

Bond market: In 2019, over 170,000 bonds were available for trading in the EEA, including 53% corporate and 5% sovereign bonds. 75% of bonds available for trading were issued by EEA-domiciled issuers. Bond trading volumes amounted to EUR 101tn in 2019, with 77% of volumes from sovereign and 18% from corporate bonds. Total EEA nominal amount was EUR 25tn, with the largest nominal amount issued in Germany (EUR 5.0tn) and the UK (EUR 4.9tn). The bond market was characterised by large trade size (average trade size for sovereign bonds of EUR 8.0mln, and EUR 2.5mln for corporate bonds in 2019). The majority of trading was off-exchange, with OTC and SI accounting for 50% and 26% of bond trading volumes in 2019, and RMs representing only 1% of trading volumes. On-exchange trading volumes are concentrated in the UK, with more than 80% of on-exchange trading on UK trading venues in 2019 (EUR 20tn)....

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