Asset managers and financial market data procurement: Pay or die!

Rudolf Siebel
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Rudolf Siebel: Managing Director, BVI, Germany

Journal of Securities Operations & Custody, 2020, vol. 12, issue 4, 302-319

Abstract: This paper describes the issues asset managers are facing in financial market data procurement. It discusses possible short- and medium-term regulatory measures in the European Union’s Markets in Financial Instruments Directive/Regulation (MiFID/R), benchmark regulation and credit rating agency regulations (CRAR) to deal with the associated exchanges price, index and ratings data-procurement and usage issues, collectively referred to as financial market data (FMD). As first step, in the near term, increased supervision and enforcement of existing MiFID/R market data cost regulation by both European Securities and Markets Authority (ESMA) and National Competent Authorities (NCAs) could help to address somewhat the ongoing dispute between market data users on the buy- and the sellside and market data providers, mainly exchanges and market data distributors. Additionally, changes to applicable supervisory laws across the different regulated data providers, namely exchanges, benchmark providers and credit-rating agencies, are suggested to be implemented during the mandate of the new European Commission, which operates until 2024, to achieve a coherent regulation of FMD cost and transparency rules.

Keywords: market data; benchmark and index data; ratings data; data cost; data licence; EU regulation (search for similar items in EconPapers)
JEL-codes: E5 G2 K22 (search for similar items in EconPapers)
Date: 2020
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Persistent link: https://EconPapers.repec.org/RePEc:aza:jsoc00:y:2020:v:12:i:4:p:302-319

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