ECMI Policy Brief: Financial Market Data and MiFID

10 April 2007

This policy brief sketches the market for financial market data, the provisions of MiFID and the implementing measures regarding financial data and data consolidation and the approaches followed by CESR, the FSA and the US authorities.

The opening-up of the market for equity market data raises the question whether data will be sufficiently consolidated and of enough quality post-MiFID, or whether data will become too fragmented, which could hinder price transparency and the implementation of best execution policies.

The paper concludes that markets should be capable to adapt and that additional licensing requirements, as the FSA has proposed, are premature and a barrier to the single market, and that a monopoly consolidator, as in the US, is not needed.

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