On-venue trading represented 64% of total addressable liquidity in European markets in Q2 2025, according to the latest report by the Association for Financial Markets in Europe (AFME).
The Q2 ‘equity primary markets and trading report’ this year found that off-venue trading is gaining significant traction in European markets.
Notably, big xyt data reveals that off-venue volumes now make up 36% of total liquidity. Specifically, OTC trading made up the majority of off-venue volumes, constituting approximately 20%, with systematic internalisers (SIs) accounting for 16% of off-venue trading.
Moreover, off-book (on-exchange) trading accounted for 7% of Europe’s total addressable liquidity in the quarter.
These findings show a marked increase from Q1 2025 where on-venue trading made up 72% of total addressable liquidity, while volume traded off-venues only constituted the remaining 28%.
Additionally, since 2018, on-venue liquidity had remained largely stable, consistently making up just over 70% of total addressable liquidity.
Elsewhere, the report found that the double volume cap (DVC) mechanism – which seeks to limit equity trading under the reference price waiver and the negotiated transaction waiver on EU venues – has slightly declined since February 2023, with 227 instruments recorded as suspended at the beginning of July 2025.
DVCs limit the amount of dark trading that can take place under EU law in a bid to boost the amount of trading that is executed on more transparent, lit venues.
Read more – Half of traders convinced FCA post-Brexit DVC decision will have little bearing on dark trading
With off-venue trading volumes continuing to grow, it appears that this occurrence is set to continue on its path of growth throughout 2025 and beyond.