ESMA Opens Market-Structure Review of European Equity Trading

ESMA has launched a call for evidence on the structure of European equity markets after reviewing MiFIR transaction-reporting data from 2022 to 2025. The regulator said the market still functions well overall, with addressable liquidity holding near 85% of total trading volume and on-book trading remaining around 75% to 80%.

The part traders should pay attention to is where activity is moving. ESMA said lit continuous trading has declined over the period, with more flow shifting into closing auctions, frequent batch auctions, and systematic internaliser trading. The paper also asks for feedback on how liquidity should be measured and whether parts of the transparency framework, including post-trade flagging, need adjustment.

This is not a rule change yet. It is a formal evidence-gathering step. But it is the kind of consultation that can shape future decisions on transparency, venue competition, and how execution quality is assessed across the EU market.

Why it matters

If regulators eventually respond to the migration away from lit order books, traders could see changes in where liquidity concentrates, how prices form, and how comparable execution quality looks across venues.

What to watch next

Comments are due by June 30, 2026. The next milestone is ESMA’s feedback statement later this year, which should show whether the agency sees enough concern to justify concrete rule changes.