With about two thirds of European ETF trading still conducted over-the-counter, providers are calling for comprehensive reporting of ETF trading to reduce fragmentation and cost and improve transparency and liquidity.

According to figures from BlackRock, European average daily volumes of ETFs at the end of 2011 were $2.96bn. Reported OTC trades represented around 16% of this at $462m. It is widely believed by market participants that OTC trading of ETFs in Europe constitutes two thirds of total ETF liquidity.