European Securities and Markets Authority has published a call for evidence on changes in European equity trading between 2022 and 2025. The paper is based on transaction data reported under MiFIR. It seeks feedback from market participants on recent trends and their regulatory impact.

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The move follows ESMA’s finalisation in December of revised transparency standards under MiFIR covering exchange-traded and selected OTC derivatives. The changes are expected to have indirect implications for CFD firms, as many hedge exposure on EU-listed derivatives venues and may need to adjust to updated reporting and liquidity transparency requirements.

ESMA Flags Equity Market Changes

The analysis shows that overall market functioning has remained stable. ESMA ESMA European Securities and Markets Authority (ESMA) is an independent Authority of the European Union that is responsible for the safety, security, and stability of the European Unions’ financial system and is charged with protecting the public. The European supervisory authority for the securities sector, ESMA was established on 1 January 2011. The European Securities and Markets Authority is an independent EU authority based in Paris. It aims to contribute to the effectiveness and stability of t European Securities and Markets Authority (ESMA) is an independent Authority of the European Union that is responsible for the safety, security, and stability of the European Unions’ financial system and is charged with protecting the public. The European supervisory authority for the securities sector, ESMA was established on 1 January 2011. The European Securities and Markets Authority is an independent EU authority based in Paris. It aims to contribute to the effectiveness and stability of t Read this Term said the share of “addressable liquidity” stayed at about 85% of total trading volume during the period. On-book trading also remained broadly steady, accounting for roughly 75% to 80% of activity.

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At the same time, the regulator identified a shift in how trading is executed. It noted a decline in lit continuous trading between 2022 and 2025. This drop was offset by increased use of other mechanisms, including closing auctions, frequent batch auctions, and trading through systematic internalisers.

The report also examines how liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term is distributed across trading venues in different countries. ESMA is asking for input on how “addressable liquidity” should be defined and treated under RTS 1. It is also seeking views on possible changes to post-trade transparency flags.

Regulator Repeals Auction Tick-Size Guidance

Separately, ESMA said it has repealed earlier guidance stating that periodic auctions fall under the tick-size regime. The regulator did not provide further detail in the announcement.

Stakeholders have until 30 June 2026 to respond to the consultation. ESMA said it will publish a feedback statement in the second half of 2026.

The authority added that it will continue to monitor developments in equity markets. This includes recent changes to MiFIR, such as the move to a single volume cap and stronger transparency requirements for systematic internalisers.