Incumbent Spanish exchange Bolsas y Mercados Espanoles (BME) experienced a decline of market share in Spanish stocks for July as multilateral trading facilities (MTFs) continue to edge into the market.
In July, the BME took 79.28% of market share for Spanish equities with €33.1 billion traded, compared to 80.21% in June with €32.8 billion traded, continuing a trend that began in January, according to figures from Thomson Reuters Equity Market Share Reporter. In December, BME’s market share tipped 94%.
Meanwhile, alternative venues across Europe have grown market share in Spanish stocks, with regional leader BATS Chi-X Europe posting 12.79% with €5.3 billion traded. In December, the MTF reached a market share of just 2.8% with over €700 million traded.
London Stock Exchange-owned MTF Turquoise has posted similar gains in Spanish equities, jumping to 2.69% market share with €1.1 billion traded, up from 1.09% with nearly €380 million traded.
Despite this trend, the BME’s own figures suggest the trend may be less exaggerated as the Thomson Reuters data shows. For July, the exchange said it had posted €73.36 billion in equities traded, a rise of 24.2% from June 2013, and 3.1% from July last year. The BME figures include auctions in its lit market in addition to block trading activity and other operations Thomson Reuters data classes as OTC.
Commenting on the rise, BME spokesperson Pablo Malumbres said: “July is a very good month for dividends; there is a lot of turnover for these stocks.”
The growth of MTF market share is in part linked to the lifting of a short selling ban implemented in July 2012 to project Spanish stocks from volatility-inducing speculation. Short-sellers sell borrowed shares with the intention of buying them back at a lower price, which can lower investor confidence in share prices.
By Jessica King