The Securities and Markets Stakeholder Group (SMSG) of the European Securities and Markets Authority (ESMA) has published advice cautioning against fundamental changes to the market structure of European equity markets, in a document dated 22 July 2026. The advice responds to ESMA's Call for Evidence on the market structure of European equity markets, which was launched earlier in 2026 to assess the functioning of trading venues, systematic internalisers, and the overall competitive landscape. The SMSG, which represents market participants, investors, and other stakeholders, argues that the current regulatory framework under MiFID II/MiFIR has largely achieved its objectives of increasing transparency and competition, and that any further major reforms risk unintended consequences such as reduced liquidity or increased fragmentation. The advice recommends targeted adjustments rather than a wholesale revision, focusing on issues like the treatment of systematic internalisers, the definition of organised trading facilities, and the calibration of transparency requirements.
The SMSG also emphasises the need for a thorough impact assessment before any legislative changes are proposed. The advice will feed into ESMA's final report to the European Commission, which is expected to inform potential revisions to the MiFID II/MiFIR framework. The document does not specify a timeline for the Commission's next steps.