Despite some moderate fluctuations in the market share of auctions and SIs, the postBrexit liquidity landscape continues to be stable with daily volumes traded averaging €56B in March up from an average of €43B in Q4 2020 (see Exhibit 1). However, the regulatory agenda for 2021/22 is set to keep the industry busy for near future, with the intention to revisit financial regulation both in the EU and the UK. The recent announcement by HM Treasury¹ to remove the Share Trading Obligation and the Double Volume Cap emphasizes the extent to which initial divergence appears inevitable. The FCA kicked off a series of consultation papers (CP) in April with the Conduct and Organisational requirements.² This will be followed by the Wholesale Markets Review in June, and then the MiFID/R review from ESMA CP in July, which will focus on proposed changes to RTS 1 and 2.
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