The increasing cost of market data is a significant and increasing problem for the capital markets in Europe and therefore a key issue for NSA.
Current requirements from trading venues – and in particular incumbent exchanges – do not protect data consumers from excessive monopoly and discriminatory pricing, which is caused by a market failure. This hampers competition and distorts the development of efficient capital markets as well as undermining the fintech innovation (the digital agenda) in securities markets, which ultimately harms investors and companies. The issue of market data costs must be addressed and will not be solved with a Consolidated Tape (in any format) as proprietary data is indispensable for market participant’s operations and cannot be substituted with Consolidated Tape data. This is also recognized by ESMA. The NSA strongly urge policy makers to include ESMA’s recommendations for handling the market data problems in their Final Report no. 1 (point 58-65 on page 26-17), regardless of the existence of a CT.
Click on the links to read the reports.
How to ensure reasonable prices of financial market data, 2014
Regulating access to and pricing of equity market data revised version, 2013