The EGB e-migration

Research evidence excerpt

Sales & Trading

FICC Market Structure & Liquidity Strategy

10 August 2026

JPMORGAN

The EGB e-migration

1. Introduction

2. Market structure evolution

3. Early read: Impact of the new bond transparency landscape

4. Impact of the new bond transparency landscape

5. Markouts: A window into execution quality

6. Protocol usage over time

7. Conclusion

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Introduction

European government bonds (EGBs) sit at the center of European rates markets, acting as key benchmarks for pricing, hedging,

and risk transfer across cash and derivatives. With shifting European rates liquidity conditions in Q2 2026, this report outlines key

themes in EGB market structure, with a focus on primary market dynamics, how execution trends have changed, automation, and

factors that could shape liquidity.

Central to EGB market structure change is the rise of electronic trading. As automation capabilities mature, participants are reevaluating how to access liquidity, manage information, and optimize execution strategies.

The EGB evolution is also unfolding alongside an expanded bond market transparency landscape in Europe. Over the last quarter,

we have seen a step-change in the availability of real-time data in European fixed income transactions, following the go-live of

U.K. and EU fixed income transparency regimes, which have increased real-time bond data to the public. With the new data

landscape as a backdrop, this report explores the EGB ecosystem: what’s changing now, and what may come next.

Market structure evolution

Trade execution behaviors are best understood in the context of both the primary and secondary markets: primary market supply

and distribution dynamics influence dealer balance sheet usage and inventory risk, while secondary market microstructure

determines how that risk is transferred through execution and liquidity provision.

On the primary market side, EGB issuance is currently experiencing a period of record-high net supply, driven by the European

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