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As Europe heads into Q2 2026, market structure is at a pivotal moment. After years of reform, investment and innovation, the region now finds itself balancing growth ambitions with regulatory stability, while navigating rapid shifts in liquidity dynamics and competition. The outlook, however, is firmly positive.
A central milestone will be the go-live of the EU consolidated tape in July 2026, delivered by EuroCTP. Now, the key question is practical: how will market participants use it? The tape could play a meaningful role in ensuring a broad range of investors can access important pricing information, execution quality metrics and broader performance benchmarking – and importantly, it should help correct persistent misconceptions about European liquidity.
Cost pressures linked to data remain an ongoing concern. Market data fees have risen sharply in recent months, despite earlier policy efforts aimed at improving fairness and accessibility.
Alongside implementation of the tape, regulatory reform discussions in both the EU and UK continue. Policymakers are rightly focused on driving growth and competitiveness, particularly in a complex geopolitical environment. Available data would suggest that Europe’ s equity market structure is functioning effectively and there seems little need for any large-scale reform of trading.
The decline in lit order book volumes is often cited as evidence of structural weakness. However, this shift reflects the natural evolution of execution mechanisms created under the framework of Mifid II.
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Participants have optimised within that framework to deliver best execution for end investors.
The higher impact costs of trading on lit order books are naturally leading to the greater use of non-displayed and bilateral liquidity where appropriate. Before any major recalibration is considered, it is critical to allow the consolidated tapes in both the EU and UK to go live, improve data quality and reduce residual reporting noise.
Indeed, many measures indicate that price formation in Europe remains robust. After years of reform, from Mifid II to post-Brexit adjustments, there is a strong case for stability. If the system is delivering good outcomes for investors, wholesale redesign would risk adding cost and complexity without clear benefit.
In the context of growth and global competitiveness, the UK ' s FCA is also reviewing the market
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ELLIE BEASLEY, head of market structure and EMEA equities COO at Goldman Sachs, gives her perspective on what to keep an eye on in Q2 2026.
risk capital requirements for investment firms and recently announced a review to potentially ease restrictions around payment for order flow( PFOF).
Looking ahead, themes such as tokenisation and extended trading hours could accelerate change. Ensuring that front-to-back processes, from execution through clearing and settlement, remain fully automated and resilient will be crucial in a 24 / 7 world.
Overall, the message for Q2 is clear: Europe’ s markets are evolving rapidly, but from a position of strength. With the consolidated tape nearing reality, competitive innovation accelerating and regulatory frameworks largely delivering, this is a moment to reinforce confidence. Stability, transparency and thoughtful modernisation, instead of regulatory overhaul and reinvention, should define the next chapter of European market structure.
82 // TheTRADE // Q1 2026