Evolution of EEA share market structure since MiFID II
Published:
30 October 2023
Publisher:
ESMA, Paris
Since the launch of the EU capital markets union initiative, new legislative and non-legislative proposals have aimed at fostering a single market for capital in the EU. These regulatory proposals, together with other external events including...
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ZBW - Leibniz-Informationszentrum Wirtschaft, Standort Kiel
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Since the launch of the EU capital markets union initiative, new legislative and non-legislative proposals have aimed at fostering a single market for capital in the EU. These regulatory proposals, together with other external events including mergers, have shaped the integration and competition level of trading platforms. Making use of regulatory data, this article presents the evolution of the European share market microstructure from 2019 to 2022, with a specific focus on the impact of the UK's withdrawal from the EU, given its pivotal role in equity markets. The important decrease in trading volumes observed after 2021 was accompanied by four main changes: a decrease in the number of infrastructures trading shares, even though they remain elevated; a new distribution of trading, both by market type and by country, with a concentration of trading in a few EU countries; the relocation of domestic trading for many European countries; and the increased specialisation of venues. Confirming the transfer of volumes in a few countries, share trading remains highly concentrated on a few trading venues after the UK's withdrawal.
