Euronext, a key player in European trading, has been instrumental in reshaping the liquidity landscape through its success in dark pool trading. Nicolas Rivard, the global head of cash equity and data services at Euronext, shared insights on the evolving dynamics of European cash equities and dark trading.

European cash equity markets have seen a significant uptick in trading volumes, with Euronext markets alone experiencing a surge of over 30% in cash equity trading turnover compared to the previous year. This growth is not only attributed to current events but also reflects a broader geopolitical shift that is positioning European markets as increasingly influential on a global scale.

Despite the initial appearance of fragmentation in European markets, the accessibility to lit liquidity across various venues is high. Euronext has played a pioneering role in this space by offering a unique model that enables seamless cross-border trading while maintaining strong local market connections. With access to seven European markets through a single platform, Euronext has emerged as the largest lit venue in Europe, facilitating trading in over 2000 equity instruments and accounting for more than 25% of equity volumes.

The use of dark trading in Europe, including dark pools and bilateral platforms, is on the rise. While lit markets continue to function effectively, there is a growing need for industry-wide discussions on achieving a balance between bilateral trading and price formation markets. Euronext’s foray into dark trading in 2024 with the introduction of Mid-Point Match has been well-received. This initiative, designed to offer zero latency dark pool trading based on Euronext’s lit book reference price, has garnered significant interest from global and local brokers, contributing to steady volume growth.

Looking ahead, Euronext is focused on further product developments and innovations as part of its strategic plan leading up to 2027. Investments in trading technology, order entry enhancements, and the expansion of retail offerings are among the key areas of focus. Additionally, efforts are underway to tap into untapped liquidity in the market, providing participants with new opportunities for trading and investment.

In conclusion, Euronext’s success in dark pool trading is not only reshaping the European trading landscape but also setting the stage for continued growth and innovation in the years to come. With a strategic vision that emphasizes technological advancements and market accessibility, Euronext is poised to play a pivotal role in the evolution of European capital markets.