Data provider big xyt has made changes to the market structure methodology of the Association of Financial Markets in Europe’s (AFME) Equity Primary Markets and Trading Report, reflecting the ongoing addressable liquidity debate in European markets.
“Due to methodology adjustments to the amount of addressable liquidity by the data provider, some figures have been revised,” AFME’s report said.
Improvements to flagging and re-categorised trades were the driver of these changes, big xyt told Global Trading, highlighting regulatory changes last year that saw a number of reported trades move between off-book and over-the-counter markets.
Earlier this year, a study from Aquis called for a single, enforceable flag taxonomy to be imposed on all post-trade reporting. At the time, big xyt chief commercial officer Mark Montgomery told Global Trading that inconsistent flagging was creating an unclear picture of available liquidity in the European markets.
READ MORE: Aquis study prompts calls for standardised FIX flags
Following the adjustments, the proportion of Pan-European volume traded on-venue declined.
In AFME’s Q1 2025 report, it stated, “In line with our records since 2018, the proportion of on-venue trading has remained stable at just over 70% of total addressable liquidity.”
Following the adjustments, on-venue trading now represents 64% of the market. Off-venue trading’s market share increased from 28% to 36%.
The changes also resulted in lower reported average daily equity turnover value on European exchanges and multilateral trading facilities.
