Structure of European Equity Markets

In its latest consultation on market structure, ESMA examines the evolution of equity markets against the backdrop of profound changessince MiFID I, including the opening up of markets to competition, technological innovations, the diversification of execution methods, and the emergence of new investor needs.

In its response, AMAFI emphasizes that:

• The fragmentation of the European stock market is no accident: it is the result of policy choices made since MiFID I to promote competition and innovation.
• The debate must refocus on the public interest: price quality, price formation, market integrity, resilience, and the sovereignty of European oversight.
• The current data do not allow for any conclusions at this stage: a longer analysis period is needed, volatility must be taken into account more effectively, and the accuracy and quality of the reported data must be improved.

AMAFI also warns that any premature reform could drive liquidity out of the EU, even though the latest MiFIR revision has not yet taken full effect.