Trade body lists measures to battle rising market data costs
The European Fund and Asset Management Association (Efama) pointed out that increasing market data costs have forced many data users to scale back their data purchase to a minimum. This results in reduced transparency, decreased levels of cross-border competition, lower market integration, less informed markets, higher costs for investors and potentially higher cost of capital – both in the EU and across the world.
To combat the problem of high data costs distorting the development of efficient capital markets, Efama has recommended the proper enforcement of MiFID 2 and MiFIR requirements. In addition, the association has called for publication of comparable pricing lists and harmonised fee schedules by trading venues.
Simplified market data agreements with longer validity, harmonised audit procedures and definitions, higher regulatory attention to the role of data vendors and global level policies on pricing of market data costs were other recommendations.