Qi Qi Dong June 1, 2021
The European Securities and Markets Authority (ESMA) has finalized guidelines on the obligations of market data providers under MiFID II and MiFIR to ensure data is accessible, fairly priced, and non-discriminatory. These guidelines target national authorities, trading venues, approved publication arrangements (APAs), consolidated tape providers (CTPs), and systematic internalisers (SIs), with notable rules on making data available free 15 minutes post-publication.
Key Guidelines:
- Market Data Policies: Providers must publish clear, accessible market data policies, covering both direct fees and indirect services like connectivity or necessary software. Policies should be easily accessible online and clarified where necessary.
- Cost-Based Pricing: Data must be priced based on actual production and dissemination costs. Providers should maintain documented methodologies, detailing direct and shared costs, and explain any applied margins to users.
- Non-Discriminatory Access: All customers should have equal access, with scalable systems in place to handle demand without discrimination. Fees should be transparent and published annually for user comparison.
- Unbundling and Per-User Fees: Data fees should not be bundled, allowing users to purchase only the specific data they need. Charges must be structured per individual user.
- Delayed Data Access: Free access to delayed data (15 minutes post-publication) must be available to all, potentially with simple registration. This data must be machine-readable to facilitate ease of use and integration.
The guidelines are expected to reduce costs for data users by streamlining fee structures and improving access, potentially benefiting smaller firms and individual investors. The implementation also mandates compliance by national authorities to ensure consistent oversight across the EU.
By introducing these standards, ESMA aims to promote a more equitable market environment, reducing arbitrary pricing and improving transparency for all market participants.
The final report is available here: