The Spanish Securities Commission (CNMV) held its third Financial Economists Meeting in Barcelona, where participants examined the expansion of Spain’s private capital markets and the fragmentation of European equity trading. Discussions focused on investor protection and financial stability challenges accompanying private market growth, alongside the balance between competition among trading venues and market depth. Assets of private equity and venture capital entities registered in Spain rose from approximately EUR 6 billion a decade earlier to EUR 56 billion at the end of 2025. Participants identified no signs of weakening fundraising but saw scope for greater institutional investor participation. They also examined private markets’ growing role in business financing and their potential contribution to strategic sectors. The relatively small average size of Spanish companies constrains transaction sizes in the sector. European equity trading has progressively shifted away from home markets over the past decade toward other venues, including segments with less transparency before execution. Participants examined the implications for price formation, trading transparency and financial stability. Competition between venues can reduce costs but also fragment trading, creating a need to balance those benefits with market depth, particularly during periods of stress.
Spanish Securities Commission examines private capital expansion and fragmentation of European equity trading
The Spanish Securities Commission (CNMV) examined Spain’s private capital expansion and European equity trading fragmentation at its third Financial Economists Meeting. Assets of private equity and venture capital entities registered in Spain reached EUR 56 billion at the end of 2025, with no signs of weakening fundraising and scope for greater institutional participation. Participants also highlighted the need to balance competition among trading venues with market depth, particularly during stress.