ESMA Publishes Latest Quarterly Bond Liquidity Assessment

ESMA Publishes Latest Quarterly Bond Liquidity Assessment

By Ez-XBRL Team 3 February, 2025
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3 February 2025

The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has released its latest quarterly liquidity assessment for bonds traded across EU platforms. This new update reveals that 1,342 liquid bonds are currently subject to MiFID II transparency requirements.

The liquidity assessment is conducted every quarter and evaluates bonds using several key quantitative criteria. These include the average daily trading activity (both trades and notional amounts) as well as the percentage of days each bond is traded during the quarter. This data provides a clear view of the market’s liquidity, helping investors and market participants stay informed.

As per ESMA’s regular updates, the liquidity data is available through their Financial Instruments Transparency System (FITRS), where XML files for the 31 January 2024 publication date can be accessed. The data is also accessible via the Register web interface.

Additionally, ESMA includes completeness indicators to measure the robustness of the data on bond liquidity, ensuring the accuracy of the assessments.

These transparency requirements will come into effect from 17 February 2025 through 18 May 2025, aligning with the provisions set out in RTS 2.

For those keen to track the evolving bond market liquidity landscape, ESMA will continue to update these assessments and publish any further revisions that may arise within each quarter, maintaining a transparent and responsive system for market participants.