However , market participants argue that the regulation over producing and pricing market data is too vague .
“ We think that the regulation on market data has been watered down to such an extent that is has almost made them null and void ,” says Singh-Muchelle .
He says that because the language used in the market data regulations is too vague , both regulators and market participants will not be able to judge what specifically a “ reasonable margin is .
“ The actual cost of the creation of that market data is not transparent . Without that information , how are we going to judge if it is a ‘ reasonable margin ’ or not ?” he adds .
According to FIA EPTA ’ s Spanbroek , the regulation has not gone far enough to help curb rising data fees .
“ MiFID II is not the solution to lowering costs . There is nothing directly in any of the delegated acts that will lower pricing , and I don ’ t see a role for clearing houses in pricing market data ,” he says .
MARKET VALUE MiFID II states that the price of market data is determined by how market participants use the data . As a result , the regulation could give exchanges and data
2016 TOP EXCHANGE INCREASES %
Vienna CBOE
ICE SIX Swiss
Borsa Italiana
BM & F 55 %
BME Spain OPRA
LSE
Xetra Ireland Eurex Oslo
Euronext
SOURCE : CJC
5 % 4 % 4 % 4 % 2 % 2 %
10 % 9 %
7 %
12 %
16 %
25 %
29 %
Euronext Oslo Eurex Ireland Xetra LSE OPRA BME Spain Borsa Italiana SIX Swiss ICE CBOE Vienna BM & F
% increase 2 % 2 % 4 % 4 % 4 % 5 % 7 % 9 % 10 % 12 % 16 % 25 % 29 % 55 % Fee ( EUR ) 94 33 52 19 72 211 25 51 56 51 96 2 44 74
THE EVOLVING MICROSTRUCTURE OF MOST MARKETS HAS BECOME MORE FRAGMENTED …
MICHAEL RICHTER , DIRECTOR , MARKIT TRADING ANALYTICS
www . thetradenews . com THE TRADE MiFID II HANDBOOK | 55