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US Equity off-exchange trading market share hits 6 year high

First Published 17th August 2016

Trading away from exchanges shows no sign of weakening.

Market share of trading in corners away from the 12 (soon to be 13 thanks to IEX!) recognized exchanges in the US equity market continues to climb and has hit a 6 year high according to Tabb Group research.

At 38.6% market share, US equity trading continues to be roughly split between the official exchanges and a plethora of ATS and other trading venues. Volumes in July were down 13% compared to June and stood at 6.6 billion shares traded per day. This also represents a 2% reduction compared to July 2015.

One venue, IEX, is set to switch to the official exchange side on 19 August. This will likely move the needle back to the exchange side by one or two percentage points for the time being, as IEX holds a 1.5% market share in US equity trading.