Together with a broad majority of market participants, including the sell-side and alternative trading venues, we have consistently made the case for a real-time tape for equities with the inclusion of pre and post-trade data.
EFAMA
members are paying close attention to the ongoing discussions in the
European Parliament and Council to reach a compromise on the MiFID
review. Together with a broad majority of market participants,
including the sell-side and alternative trading venues, we have
consistently made the case for a real-time tape for equities with the
inclusion of pre and post-trade data. Given that in the design of the
tape there will be fair compensation back to the data contributors (i.e
the stock exchanges), there is absolutely no reason to suggest a tape
that is delayed, slow or containing anything less than live streams of
data.
As
institutional investors who make investment decisions directing capital
flows, we know better than most the value of the data that we are
requesting, and how the failure to produce such a tape will hinder
growth in the CMU, and institutionalise a weakness we have vis-à-vis
other jurisdictions for years to come. We are surprised that real-time
data delivery should even be contested, given that industry’s position
has been recognised and supported by the European Parliament on this
topic, and by the European Commission proposal itself.
Keshava Shastry, Global Head of Capital Markets at DWS said “The
availability of real-time data, before as well as after trades, is
critical in driving the activities of capital markets participants.
Without it, we would have inefficient allocation of capital. A real-time
tape also enables more accurate risk and liquidity management. This is
especially important in volatile times, where we want to make the best
decisions on the market through the best information. In order to remain
competitive and form a strong capital market union in Europe, we must
provide investors with a real-time tape.”
Tanguy van de Werve, Director General of EFAMA, echoed these concerns: “Industry
has been working over the last 2 years to help design a viable
framework for the consolidated tape. If the use-cases for market
participants on real-time data (as opposed to 1-minute or 15-minute
delayed data) are not compelling enough, you would think that
policymakers would be fearful of the longer term risks of failing to
produce a viable tape, and the missed policy objectives. For me it is
clear that the democratization of data, the global competitiveness of
our CMU, and the increased transparency for all investors groups,
including retail, hang in the balance. I hope that these negotiations
will ultimately yield a commercially viable tape that users will want to
purchase.”
EFAMA
© EFAMA - European Fund and Asset Management Association
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