Common each day fairness buying and selling on European most important markets and MTFs up 14% from final quarter

Regardless of an total 6% lower year-on-year, the typical each day fairness buying and selling on European most important markets and multilateral buying and selling services (MTF) for Q1 bounced again by 14% quarter on quarter, in keeping with the Affiliation for Monetary Markets in Europe’s (AFME) newest report. 

Addressing the present state of play throughout secondary markets, AFME highlighted that knowledge traits demonstrated a deterioration in market liquidity as measured by turnover ratio – “calculated as annualised turnover worth relative to market capitalisation”. 

Following a report low of 100% turnover ratio noticed in H2 2023, the turnover ratio elevated to 110% in Q1 2024, in keeping with the ‘fairness main markets and buying and selling’ report.

As well as, AFME additionally highlighted that on-venue buying and selling accounted for almost all of whole addressable liquidity within the fairness area for the primary quarter of 2024, as indicated by latest massive xyt knowledge.

Particularly, on-venue buying and selling represented 74% of the whole addressable liquidity, whereas quantity traded off-venues, on systematic internalisers and pure OTC, made up the remaining 26%.

“The proportion of on-venue buying and selling has fluctuated at round 70% relative whole addressable liquidity since our data begin in 2018,” added AFME.

Elsewhere, in addressing the fairness buying and selling market construction, the report highlighted the relevance of double-volume caps (DVC) and the truth that the variety of devices suspended beneath the DVC has skilled a decline over the past 12 months.

Learn extra: AFME calls on regulators to take away caps on block buying and selling

Particularly, there have been 232 suspended devices as of March 2024. AFME nevertheless confirmed that these 232 devices at the moment suspended beneath the DVC on the EU or buying and selling venue degree “symbolize 0.8% of the equity-like devices on ESMA’s July 2023 DVC information (27,859) [and] 174 of the 232 suspended devices have EU ISINs.”