Position on non-addressable liquidity and price formation

FESE would like to highlight that in the debate around non-addressable liquidity, improving data quality and the flagging of transactions, and in particular allowing the identification of technical trades, is essential. Whilst there is no need for a regulatory definition of addressable liquidity, streamlining the framework where there are inconsistencies is necessary to ensure a clear and harmonised understanding across the EU.

At the same time, the impact of any proposed changes on the transactions excluded from post-trade transparency should be factored in. This topic will also have to be considered in the context of the share trading obligation as well as the consolidated tape, given that the design of a consolidated tape could be impacted by the type of trades under its scope.