EU Equity pre- and post-trade transparency regulation (LBF vol. 21) 2021/14.II.2:14.II.2 Use restrictions

EU Equity pre- and post-trade transparency regulation (LBF vol. 21) 2021/14.II.2

14.II.2 Use restrictions

Deze functie is alleen te gebruiken als je bent ingelogd.Deze functie is alleen te gebruiken als je bent ingelogd.Deze functie is alleen te gebruiken als je bent ingelogd.

Another variable of the equity pre- and post-trade data price is the use restriction of the data. The data agreement between a data supplier (e.g. RM or data vendor, such as Bloomberg or Refinitiv) and a data user (e.g. end-user or data vendor) can restrict how the supplied equity pre- and post-trade data can be used.1 Different prices will be charged depending on the (lack of) use restrictions. Two common examples of use restrictions are the following:

1.

A use restriction in a data agreement can be whether or not the supplied data is permitted to be redistributed, including to which extent.2 A distinction can be made between internal and external use, which both cover different gradations. The data agreement can restrict the use of data only internally, among other things, to one employee or several employees. The data agreement can also permit (or instead restrict) the redistribution externally (e.g. to only a few or multiple sources).3 External redistribution is of particular relevance for data vendors that wish to redistribute already published data to end-users (e.g. consolidate already published equity pre- and post-trade data by multiple RMs into one source).4

2.

A related example of a use restriction in a data agreement is whether or not it is permitted to engage in so-called derived data production. Derived data production refers to the situation where ‘raw data’ (data as produced by – ‘derived from’ – the original market data source) is transformed into a new set of data.5 For example, a data vendor might wish to add additional value to raw data by adding statistics (and/or by providing a consolidated picture across multiple markets, see example 1 above).6

Deze functie is alleen te gebruiken als je bent ingelogd.