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European ETF liquidity buoyed by new trading platforms

Tech-savvy proprietary trading firms and retail investors are entering the market

Tech-savvy proprietary trading firms and online investment services providers are banking on growth in Europe
Tech-savvy proprietary trading firms and online investment services providers are banking on growth in Europe Photo: iStock

As misnomers in financial markets go, the term exchange-traded fund is possibly hard to beat – certainly in Europe at least. European ETFs predominantly trade over the counter, not on stock exchanges as their name suggests.

That fact would appear to fly in the face of ETFs' raison d'être: to allow investors to freely and cheaply buy into baskets of securities whenever they want, like a stock.

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