The European Securities and Markets Authority (ESMA) published a Call for Evidence on 30 April 2026, seeking stakeholder input on the market structure of European equity markets. The initiative aims to assess the current functioning of equity trading venues, including lit and dark pools, systematic internalisers, and periodic auction mechanisms, and to identify potential inefficiencies or regulatory gaps. The call is addressed to market participants such as investment firms, trading venues, investors, and trade associations, and will inform potential future policy recommendations or amendments to MiFID II/MiFIR.
ESMA's document is a non-binding reference tool that invites responses by 30 July 2026. It does not propose concrete numerical targets but poses targeted questions on topics such as the impact of the consolidated tape, the role of reference prices in dark trading, and the fragmentation of liquidity across venues. The agency also asks about the effects of recent technological developments, including the rise of retail trading platforms and the use of artificial intelligence in order execution.
The call for evidence reflects a trade-off between fostering competition among trading venues and ensuring investor protection through transparency and best execution. On one hand, a more fragmented market structure can lower costs and spur innovation; on the other, it may increase complexity for investors and hinder price formation. ESMA seeks to balance these objectives by gathering empirical data before considering any regulatory changes.
Stakeholders likely to be most impacted include trading venues (exchanges, MTFs, OTFs), which may face new transparency or operational requirements; investment firms and systematic internalisers, which could see changes to their trading obligations; and retail and institutional investors, who may benefit from improved market quality but could also bear compliance costs passed on by intermediaries. National competent authorities would be responsible for enforcing any future rules.
Following the consultation, ESMA is expected to publish a feedback statement and potentially a report with policy recommendations to the European Commission. The Commission may then propose legislative amendments to the MiFID II/MiFIR framework, likely in 2027. The call for evidence is the first step in what could become a significant reform of European equity market structure.