THE CONSULTATION
The European Securities and Markets Authority (“ESMA”), launches a public consultation on the development in prices for pre and post trade data and post-trade consolidated tape (“CT”) for equity instruments. Whilst MiFID II sets out the legal framework for operating a CT, to date no CT has been established, meaning MiFID II has not delivered on its objective to lower the price of market data.
On balance, the benefits outweigh the cons in establishing a CT. Despite the regulatory framework and competition from non-regulated entities, a CT would be welcomed as it would provide post-trade information on any equity and equity-like instrument on a single platform. ESMA has commented it is prepared to support co-legislators in establishing a CT in the EU.
NEXT STEPS
ESMA will consider all comments received by 6 September 2019 and will develop a final review report to be submitted to the European Commission by the end of the year.
To view the full ESMA press release, please click here.
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