ESMA publishes European share market structure evolution article
31 October 2023 Europe
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The European Securities and Markets Authority (ESMA) has released an article considering the evolution of the European share market structure following the implementation of the markets in financial instruments directive (MiFID).
The report follows market structures between 2019 and 2022, placing a particular focus on the impact of Brexit and the UK’s “pivotal role” in equity markets.
An analysis of the European markets structure over this timeframe reveals significant changes, ESMA says. Primarily, trading volumes decreased in 2021 following the UK’s withdrawal from the EU. However, while the number trading infrastructures remains elevated a decrease is noted.
Additionally, the article reports a shift in share trading distribution in terms of market types and counties, a concentration of trading in certain EU countries and trading venues, and a relocation of domestic trading activities. There has also been a rise in the specialisation of trading venues, ESMA says.
Assessing the evolution of the European market structure in this way allows ESMA to work towards its goal of “improving the level playing field between execution venues”, outlined in the MiFIR Review.
The report follows market structures between 2019 and 2022, placing a particular focus on the impact of Brexit and the UK’s “pivotal role” in equity markets.
An analysis of the European markets structure over this timeframe reveals significant changes, ESMA says. Primarily, trading volumes decreased in 2021 following the UK’s withdrawal from the EU. However, while the number trading infrastructures remains elevated a decrease is noted.
Additionally, the article reports a shift in share trading distribution in terms of market types and counties, a concentration of trading in certain EU countries and trading venues, and a relocation of domestic trading activities. There has also been a rise in the specialisation of trading venues, ESMA says.
Assessing the evolution of the European market structure in this way allows ESMA to work towards its goal of “improving the level playing field between execution venues”, outlined in the MiFIR Review.
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