Europejski Urząd Nadzoru Giełd i Papierów Wartościowych (European Securities and Markets Authority - ESMA), Analiza ryzyka ESMA TRV dotycząca neo-brokerów i uporządkowanych rynków w UE: rozwój, korzyści i ryzyka

9 July 2024

ESMA50-524821-3402

ESMA TRV Risk Analysis

Neo-brokers Orderly Markets in the EU:

Developments, benefits and risks

Summary

Characterised by innovative, online-only investment services, neo-brokers have grown rapidly in recent years. To gain understanding of their activities, and as part of continual monitoring efforts, ESMA conducted a market survey of EU-based neo-brokers in 2023.

The results confirm that most of the firms’ trading volumes originate from retail clients. Share trading accounts for the majority of order volumes. Larger neo-brokers tend to offer wide ranges of securities issued in the EU and the US, while smaller firms tend to specialise in national markets in the EU. Overall, US-issued shares are the most commonly traded, but those issued in the EU represent a significant and growing proportion of trades.

Neo-brokers adapt their business model to the type of financial instrument traded. They generally act as a service provider for clients trading shares and ETFs, but...