17.V.1 Overall developments

The ESMA MiFID II Review starts with some general observations. ESMA identifies that access to equity pre- and post-trade data (i.e. a reasonable price) is becoming increasingly important for the EU equity markets. Technological innovation and fragmentation ever since MiFID I resulted in increased demand for equity pre- and post-trade data.1 For these reasons, ESMA believes it is necessary that data users have sufficient access to equity pre- and post-trade data. ESMA also considers it important that data users know what they are paying for.2

The responses to the ESMA consultation are mixed. Trading venues (RMs and MTFs, being the main data producers) and data users/data vendors have different views on whether or not MiFID II has been successful in the area of equity pre- and post-trade data prices. ESMA acknowledges the feedback of both data users/data vendors and trading venues, but ESMA is overall in favour of the former (data users and data vendors). Data users and data vendors complain about excessive fees, complex market data policies, and overall higher costs for market data.3 ESMA notes ‘it appears that overall market data prices increased, in particular for data for which there is high demand (e.g. non-display data).’ ESMA also says ‘it appears that currently market data prices are not only charged on the basis of production costs (including making the data available) but also reflect the value for data users’.4 At the same time, ESMA acknowledges the views of the trading venues. ESMA observes that after MiFID II entered into force market data prices did not increase for all market data offered. ESMA also says that not all trading venues and APAs increased market data prices.5

Against this background, ESMA provides guidance on the price of equity pre- and post-trade data in the ESMA MiFID II Review. Due to the mixed achievement of the MiFID II regime for equity pre- and post-trade data prices (trading venues and data users/vendors present conflicting views), ESMA proposes a mix of legislative changes and supervisory guidance.6