Tim Cave, an analyst from TABB Group, recently covered four liquidity trends in Europe’s equity market since the MiFID II regulations took effect including SI growth, passive investing, risk, and more:
As the first year of MIFID II draws to a close, we can begin to make some observations about its impact on liquidity in Europe’s equity market.
Overall, November saw a dip in European equity volumes, with average daily notional falling 9%, to €79.4 billion, as markets calmed following the turmoil during “Red October.” Month over month, the market exhibited a holding pattern in terms of the market share of major execution channels.
Nevertheless, some clearer trends are beginning to emerge. Here we take a look at four key issues