What is a Systematic Internalizer (SI) under MiFID II?

A Systematic Internalizer is an investment firm that deals on its own account when executing orders for clients against its proprietary capital outside of a regulated market, MTF, or OTF.

How has MiFID II impacted European trading venues?

MiFID II has broadened trading opportunities across various venues, including exchanges, MTFs, and SIs, leading to shifts in execution strategies and liquidity provision.

What is the trend in European bilateral trading?

Bilateral trading, including off-book on-exchange, OTC, and SI activity, has increased significantly, now forming the largest segment of European market activity.

Home / Business and Economy / European Trading Shifts: Bilateral Dominance Grows

European Trading Shifts: Bilateral Dominance Grows

9 Dec, 2025

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Summary

Bilateral trading now accounts for 55% of European market activity.
Goldman Sachs leads as the top Systematic Internalizer provider.
Lit trading volume has decreased significantly since MiFID II.

European Trading Shifts: Bilateral Dominance Grows

European equity markets are experiencing a notable shift towards bilateral trading, which now comprises approximately 55% of total activity. This evolution, spurred by MiFID II, sees Systematic Internalizers (SIs) playing a crucial role in facilitating liquidity. Goldman Sachs has emerged as the leading SI provider, surpassing competitors like JPMorgan and Morgan Stanley.

In contrast to the rise of bilateral trading, lit market execution has seen a contraction, now accounting for around 40% of activity compared to its previous peak. Dark pool trading has maintained a steady presence, holding at approximately 5%. The analysis of non-price-forming trades reveals that even after adjustments, bilateral trading remains a significant element, offering a clearer picture of genuine market interest and liquidity.