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“ I think the FCA has been taking a very sensible , data-driven , economicsdriven approach as compared to the EU approach of juggling competing political interests , which does not lead to optimum outcomes .”
NATHANIEL LALONE , PARTNER AT KATTEN MUCHIN ROSENMAN on data quality . Because if the data quality is poor , the venture will be a failure .”
Market participants naturally agree that this is a significant question and , importantly , one that needs to have a clear process laid out in terms of process and protocols in order to ensure confidence in the end-result – without which , the tape would be meaningless .
Looking from the buy-side point of view generally , O ’ Brien highlighted the importance of these players being appreciated , both in terms of data access and sharing : “ Data feeds into every part of the buy-side workflow , across the front , middle and back office . It ' s critical the buy-side are informed about their data rights , so they feel empowered to use their data in creative ways to foster greater innovation , increase competition and promote a healthy market structure .”
With this in mind , a significant aspect when it comes to the CT becomes how much autonomy and flexibility participants have when it comes to actually using the tape . ‘ Mandatory contribution ’ aside , there is also an argument to be made for enforcing mandatory consumption and obliging all , or parts , of the market to utilise a CT . However , this approach – for all the potential benefits it could bring – would potentially have an even bigger fall out .
The success of a CT is hinged on it being an attractive prospect for market data users , for this reason the quality of data is obviously paramount . If the market were obliged to consume the data , providers would arguably not be motivated to offer the best , most innovative data possible .
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