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.”
Notes to editors
You can find additional information and resources on MiFID and the proposed European consolidated tape on this site here.
For further information, please contact:
Head of communication & membership development
Tel: +32 2 548 26 52