BREAKING IN As a result , new vendors will find it incredibly difficult to break into the space even in a post- MiFID II world .
“ We definitely need competition , but for newcomers it is incredibly difficult because in order to start providing data you have to connect to the existing platforms first ,” argues Spanbroek .
Market participants have increased demands for a competition review into the monopolistic hold incumbent national stock exchanges have over market data .
In the meantime , one solution is for the industry is to agree on the introduction of consolidated tape , a provision that is not mandated for all asset classes in the regulation , as a means to provide a consolidated view of trade transparency
“ Chopping up the data and segmenting pricing is ultimately up to the market to decide . But even if you sign up to Bloomberg or Thomson Reuters you pay for your own pricing . So we have had conversations within our own
THE BIGGEST PROBLEM THAT PREVENTS A CONSOLIDATED TAPE IS BEING ABLE TO GET THE DATA AT A REASONABLE PRICE .
MARK HEMSLEY , CHIEF EXECUTIVE OFFICER , BATS EUROPE
community about providing consolidated tape with the pricing we have ,” Spanbroek adds .
Mark Hemsley , chief executive officer of Bats Europe , does not have high expectations that there will be a shift to a consolidated tape model as a result of the regulation .
He says : “ The biggest problem that prevents there being a consolidated tape is being able to get the data at a reasonable price . If you were to buy different components of the data , the problem is that the incumbent exchange can still hike up their data charges .
“ So the consolidated tape price has got to be at least the aggregate of those three market data charges , and I don ’ t think people will be willing to buy the consolidated tape product without a discount . If the input costs are too high then no one will want to buy it .”
Hemsley says he has very low expectations that the provisions in MiFID II will lead to a consolidated tape in the near-term .
He adds : “ I think there will have to be a regulatory mandate for that to happen .”
With MiFID II looming on the horizon the prospect of more data burdens is very real for the buy-side . The storm over data fees threatens to crack the market . It remains to be seen how the exchanges will address this . l
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