Exploring the Christmas market of ETFs in Europe is like unwrapping presents – trade sizes above €1m do the tango on RFQ platforms (80%) and OTC (20%), while the smaller ones jingle all the way on exchanges.
For trade sizes around €200k, RFQs and exchanges share the mistletoe evenly. But, watch out for those Systematic Internalisers sneaking into the holiday party for sizes under €5k – they’ve got a 5% market share, like elves in the market workshop!
Only 20% of ETF volumes dance on central limit order books, but fear not, investors can deck the halls of multiple exchanges. Unwrapping the market share by exchange reveals a festive surprise – it’s like each exchange got the same Christmas wishlist, especially at the magical €100k sweet spot.
As the market structure transforms like a snowflake, expect participants to challenge the trading status quo with innovative sleigh rides. Some may dash through the snow first, but soon, others will follow in a winter wonderland of ETF trading!
Market share by mechanism and trade size for European ETFs
ETF market share by trade size for major European exchanges
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