Leading ETF issuers in Europe have joined forces with financial data giant Bloomberg to provide investors with a ‘consolidated tape’ of aggregate ETF trading data in one place for the first time.

The Bloomberg ETF Aggregate Volume feed provides 90-day average aggregated volume across exchange and OTC venues.

Led by Invesco, iShares, SPDR, Lyxor and DWS, with financial services company Citi also playing a significant role, the Bloomberg ETF Aggregate Volume feed aims to increase transparency around European ETF trading and has been created as a result of increased demand for liquidity clarity following the introduction of The Markets in Financial Instruments Directive 2 (MiFID II) at the start of 2018.

The feed covers all European listed ETFs and ETPs and incorporates trades taking place on regulated exchanges such as the London Stock Exchange as well as over the-counter (OTC) platforms.

An estimated 70% of European ETF trades went unreported publicly prior to January because they were traded OTC. The inclusion of OTC trades will therefore make a crucial difference and help lift the veil on true ETF liquidity.

Jim Goldie, EMEA Head of ETF Capital Markets, Invesco, said, “The obligation to report OTC trades in ETFs post-MiFID II has presented us, the industry, with an opportunity to demonstrate the true liquidity of ETFs to our clients. This has previously been a challenge as even though trades were being reported post MiFID II, there was no consolidated tape, which allowed clients an aggregated view of trading volumes in one place.”

The service currently consists of an aggregated volume field which shows the 90-day average aggregated volume across exchange and OTC venues. The feed is updated on a daily basis.

The launch of the new service comes at a time of continued growth in Europe’s ETF market. According to data from ETF industry consultants ETFGI, total assets in ETFs and ETPs listed in Europe reached $783 billion in October.

Invesco believes that the increased transparency that MiFID II has ushered in has contributed towards the greater uptake of ETFs by institutional investors in Europe and is likely to drive further growth in the future.

Goldie added, “The industry has come together for the benefit of all stakeholders to showcase the liquidity, transparency and strengths of the ETF market, and we expect this service to further catalyse the growth of the sector. European investors continue to invest in and benefit from ETFs and we as an industry are responding to that demand.”