The Liquidity Problem in European Markets

Market Structure, Liquidity and the Future of European Trading

In this episode of FinTech Focus TV, hosted by Ian Bailey, we are joined by Laetitia Visconti, Head of Market Structure and Product Innovation at Aquis Exchange. Recorded live at the FIX EMEA Trading Conference 2026, this conversation delivers a sharp, insight-led view into the realities shaping European capital markets today. For anyone involved in FinTech recruitment, trading technology, or capital markets hiring, this episode provides a grounded and practical perspective on the challenges and opportunities defining the industry.

Laetitia begins by outlining her journey into market structure, having spent 14 years at Barclays working on the trading desk with a focus on access to exchanges and market structure. Her move to Aquis Exchange came at a pivotal time, coinciding with the organisation’s acquisition by SIX Group, positioning it within a larger exchange ecosystem. This combination of deep trading experience and strategic leadership gives her a unique vantage point on how European markets operate, and more importantly, where they are falling short.

FinTech Market Structure and Liquidity in European Capital Markets

A central theme of the discussion is liquidity, specifically, how it is perceived versus how it actually exists within European markets. Laetitia highlights a fundamental issue that continues to distort decision-making across trading desks, asset managers, and institutions: the market is not seeing the full picture. Too often, participants focus on primary exchange volumes, which only represent around 35% of total liquidity. Even when multilateral trading facilities are included, that number only rises to approximately 50%. This means that a significant proportion of accessible liquidity remains overlooked.

This fragmentation has serious implications for capital markets. When investors and risk managers underestimate the true depth of liquidity, they are less likely to allocate meaningful capital. This creates a knock-on effect, reducing trading activity and ultimately limiting market growth. For a FinTech recruitment business like Harrington Starr, this highlights a critical trend: firms require talent that understands not only trading technology but also the nuances of market structure and liquidity fragmentation. As financial markets become more complex, the demand for professionals who can interpret and navigate these dynamics continues to grow.

From Laetitia’s perspective, the industry’s failure to aggregate and properly present liquidity is not just inefficient; it is actively holding Europe back. If market participants believe liquidity is lower than it actually is, they will behave accordingly, leading to reduced participation and weaker capital markets overall.

Regulation vs Innovation in Financial Technology and Trading

Another major theme explored in this FinTech Focus TV episode is the relationship between regulation and innovation. Laetitia makes a compelling case that while regulation is essential for market stability, it can also act as a constraint on innovation if not designed carefully. She argues that growth in financial markets cannot happen without innovation, and innovation cannot thrive in an overly restrictive regulatory environment.

One of the challenges she identifies is the “black and white” way in which trading models are often viewed. There is a tendency to treat central limit order books as the dominant or preferred structure, while other forms of trading, such as bilateral or alternative models, are seen as less relevant. However, the reality of modern markets is far more nuanced. With increasing electronification and the integration of AI-driven trading strategies, there is a growing need for segmentation and flexibility in how trades are executed.

This has direct implications for FinTech hiring and recruitment. As trading venues and financial institutions seek to innovate, they require professionals who can design, implement, and manage new trading models. This includes expertise in algorithmic trading, market structure design, and regulatory strategy. For Harrington Starr, this reinforces the importance of connecting firms with talent that can operate at the intersection of technology, regulation, and market innovation.

Market Data, Consolidated Tape and Transparency in Capital Markets

The conversation also explores the evolving role of market data, particularly the introduction of the consolidated tape in Europe. Laetitia discusses the anticipated launch of the Euro consolidated tape, which is expected to improve access to market data by aggregating information from multiple trading venues. With a significantly lower price point than traditional data feeds, the tape has the potential to democratise access to market data and increase transparency across the region.

However, she also raises important concerns about data quality and interpretation. While the consolidated tape promises to provide a more complete view of the market, there is a risk that the data may be difficult to understand or contextualise. If market participants cannot interpret the data effectively, they may hesitate to engage with it, limiting its overall impact.

This reflects a broader challenge within financial technology: access to data is only valuable if it can be translated into actionable insights. As a result, there is increasing demand for professionals with expertise in data engineering, analytics, and trading technology. For firms operating in capital markets, the ability to extract meaningful insights from complex datasets is becoming a key competitive advantage.

The Impact of Regulation on Trading Venues and Market Growth

Laetitia also addresses specific regulatory constraints that are limiting the ability of trading venues to innovate. Measures such as dark caps and restrictions on waivers are highlighted as examples of regulations that reduce flexibility and make it more difficult to develop new trading workflows and order types. While these measures are designed to maintain market integrity, they can also create unintended consequences by stifling innovation.

She contrasts this with the UK’s approach, which she sees as more flexible and supportive of innovation. By allowing trading venues to experiment within a supervised framework, the UK model encourages the development of new solutions while maintaining oversight. This approach, she suggests, could serve as a blueprint for Europe as it seeks to enhance its competitiveness in global financial markets.

For FinTech recruitment and talent strategy, this underscores the importance of hiring professionals who understand regulatory frameworks and can navigate complex compliance environments. As regulations continue to evolve, firms need individuals who can balance innovation with regulatory requirements, ensuring that new technologies can be implemented effectively and responsibly.

Retail Investment, Capital Allocation and the Future of European Markets

The discussion then shifts to retail investment and the broader ambition to unlock trillions of euros in savings for capital markets. While this presents a significant opportunity, Laetitia raises a critical concern: there is no guarantee that this capital will remain within European markets. Without the right incentives and structures in place, much of this investment could flow into global markets, particularly US equities.

This is illustrated by a simple example. When individuals use AI tools to seek investment advice, they are often directed towards widely recognised indices such as the S&P 500. This highlights a fundamental challenge for Europe: even if retail participation increases, there is no assurance that it will translate into investment in European companies.

Addressing this issue requires a holistic approach, including discussions around taxation, incentives, and market structure. Laetitia emphasises that without meaningful reform, Europe risks exporting capital rather than using it to fuel its own economic growth. This has significant implications for the financial technology sector, as well as for recruitment within capital markets. Firms need to attract talent that can drive innovation, improve market competitiveness, and create more compelling investment opportunities within the region.

FinTech Recruitment, Talent and the Future of Market Structure

From a FinTech recruitment perspective, this episode highlights several key trends shaping the industry. The increasing complexity of market structure, the growing importance of data and analytics, and the evolving regulatory landscape all point to a rising demand for highly specialised talent. Professionals who can bridge the gap between technology, trading, and regulation are becoming increasingly valuable.

For Harrington Starr, as a leading FinTech recruitment business, these insights reinforce the importance of understanding the market at a deeper level. Recruitment is no longer just about filling roles; it is about identifying individuals who can navigate complexity, drive innovation, and contribute to the long-term growth of financial markets. As the industry continues to evolve, the ability to connect the right talent with the right opportunities will be a key differentiator.

The Future of Financial Markets and Trading Innovation

Throughout the episode, one message remains consistent: the future of financial markets depends on a more accurate understanding of liquidity, a more balanced approach to regulation, and a greater willingness to embrace innovation. European markets have significant potential, but unlocking that potential requires a shift in how the industry thinks about market structure, data, and investment.

Laetitia’s insights provide a valuable perspective on the challenges facing the industry, as well as the opportunities that lie ahead. By addressing issues such as liquidity fragmentation, regulatory constraints, and capital allocation, Europe has the potential to strengthen its position within the global financial system.

For professionals working in trading, financial technology, and capital markets recruitment, this episode of FinTech Focus TV offers a compelling and thought-provoking discussion. It not only highlights the complexities of modern markets but also provides a clear direction for where the industry needs to focus its efforts in the years to come.