Dark MTFs gain amid nine-month European volume high

Dark multilateral trading facilities increased as a percentage of European equity activity in January, as overall trading in the region reached its largest total since May 2012.

Dark multilateral trading facilities (MTFs) increased as a percentage of European equity activity in January, as overall trading in the region reached its largest total since May 2012.

Dark MTFs represented 4.59% of trading volume in January, accounting for €32.5 billion of the €706.6 billion traded across European venues, according to data from Thomson Reuters Equity Market Share Reporter.

In December, dark MTFs accounted for 4.34%, or €21.08 billion of the €485.4 billion traded, while in January 2012, the venue type accounted for 3.88% of overall trading.

In terms of overall trading the €706.6 billion recorded in January represented the highest monthly total since last May's €738.6 billion.

BATS Chi-X Europe, the dual order book MTF, maintained its position as the leading European venue with 22.6% market share, up from the 22.3% recorded the previous month, but lower 2012 high 24.2% recorded last January. London Stock Exchange-owned MTF Turquoise grew its market share to 5.46% in January, compared to 4.81% In December.

Europe's largest domestic stock exchanges, Deutsche Börse and the LSE, continued their downward trend in market share in January.

Deutsche Börse reached 12.02% of equity volumes traded with €84.9 billion, down on December's 12.81% and November's 13.66%. Similarly, the London Stock Exchange (LSE) hit 11.8% in January with €83.5 billion traded, down from 12.54% in December and 13.32% in November.

However, when combined, the figures show Europe's leading MTFs have not yet clawed back market share lost to exchanges over recent months. Turquoise and BATS Chi-X Europe reached 23.06% of equity volumes traded, compared to the 42.12% traded across Deutsche Börse, the LSE, NYSE Euronext Paris and Borsa Italiana. In December, BATS Chi-X Europe and Turquoise accounted for 22.31% of market share compared to 41.9% for the four main exchanges.

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