In its comment letter, the MFA supported the goal of the European Securities and Markets Authority (ESMA) proposal to enhance access to market data through improvements to the MiFID II/MiFIR regime. This letter is in response to ESMA’s consultation on the transparency regime for non-equity products and technical standards for the provision of market data on a reasonable commercial basis.
“The ESMA proposals will provide market participants with access to affordable, accurate and timely market data. This will improve the transparency, competitiveness and efficiency of EU capital markets and will support the Capital Markets Union. We will be able to deliver on our promise,” said Brian Corbett, MFA Chairman and CEO.
The MFA’s letter supports ESMA’s proposed measures to make market data pricing more transparent and subject to regulatory oversight. This requires trading venues and approved publishing agreements to break down market data costs into specific categories, justify cost allocation, and explain proposed fee differences between customer types. This includes: Increased price transparency ensures market participants have access to affordable, accurate and timely market data. The proposed measures on price transparency will strengthen EU capital markets by making price discovery more efficient and increasing market liquidity.
The MFA letter emphasizes that while data volume and delivery speed are appropriate metrics to consider in pricing, pricing should not vary based on subscriber usage.
MFA strongly believes that data prices should not fluctuate based on how an individual user plans to use the data or the user’s business model. Charging different customers different prices for the same data is inherently discriminatory. The value of market data to users is highly subjective and is not a good indicator of pricing. Users of market data must pay cost-based prices for the same data for the same purpose.
Read the full comment letter here.
Source:MFA
Newsletter registration
We bring you exclusive articles about the stock market
