New ESMA Transparency Regime: Day-One Trading Analysis

The new ESMA transparency regime for Bonds came into effect on 2 March, representing a significant structural development in the EU fixed income market. In last week’s Propellant Insights, we outlined the key changes introduced under the new ESMA transparency framework in comparison with the new FCA regime, which went live in December 2025 [read more].

To assess how trading activity is shifting under the new regime, the Propellant team conducted analysis at multiple observation points (14:15, 16:15, and 18:30 UTC) to capture the evolving patterns. The early data indicated a significant increase in real-time reporting across several market segments.

Key observations:

- There is an immediate impact on transparency, with real-time reports dramatically increasing.

- The transparency is skewed by jurisdiction (as expected), with EUR-denominated bonds more actively reported under ESMA and GBP under the FCA.

- Corporate bonds show a significant percentage increase, in terms of real-time transparency, far greater than sovereigns.

Volume comparison: ESMA real-time transparency – Day 1 vs. 2025 Daily average (as of 14:15)

In absolute terms, Italian government bonds (BTPs) recorded the highest volume (as they often did under the old regime). However, the key takeaway is the relative increase in transparency.

German Bunds, US Treasuries (UST) and French government bonds (OATs) showed dramatic increases, but the most pronounced changes were observed in corporate bonds, with GBP leading the way (largely because many GBP issues were classified as illiquid under the old rules). USD and EUR corporate bonds also recorded multi-hundred percent increases in real-time transparency on day one, highlighting the immediate impact of the regulatory shift.

Volume comparison: ESMA transparency regime - Day 1 vs. FCA regime (as of 16:15)

The results are likely to be what many expect.

Under the ESMA regime, more EGBs are reported in real time. By contrast, UK Gilts and UST show higher real-time volumes reported via the FCA.

When it comes to government bonds, BTPs are the standout, with a very heavy skew towards ESMA. This is likely due to the highly developed nature of Italy's electronic bond market infrastructure.

On the credit side, EUR corps stand out from an ESMA perspective, whilst USD and GBP show more real-time volume reported via the FCA.

Volumes comparison: ESMA transparency regime - Day 1

At the close of the first day under the new ESMA regime, we look back at today’s events and see that for both sovereign and corporate bonds, the new ESMA transparency regime is resulting in more same day reporting.

This extended view incorporates trades reported throughout the day (rather than just in real time), providing a more comprehensive view of the regime’s immediate impact.

We will continue to provide further updates, including ongoing comparisons of reported trading activity under the FCA regime and new ESMA one.

If your organisation is looking to analyse this data and evaluate how the new transparency regime may affect your trading strategies, please complete the form and submit your enquiry.