18.IV.3 Consequences for equity pre- and post-trade data prices

The value of equity pre- and post-trade data has increased from the ISD to MiFID II. Main reasons are increased demand due to market fragmentation and technological innovation (electronic and algorithmic trading). At the same time, prices for equity pre- and post-trade data have been controversial ever since MiFID I, and even to some extent under the ISD. The answer to whether or not equity pre- and post-trade data prices are reasonable is ambiguous. That being said, the EU is overall more supportive of the data users, which means that prices are not entirely reasonable. The result is a mixed EU approach (hybrid). On the one hand, from the ISD to MiFID II has introduced more EU regulation for the prices of equity pre- and post-trade data (top-down). The aim here is to ensure equity pre- and post-trade data is available for a ‘reasonable’ price and that data users know what they are paying for. On the other hand, the EU intends to find a balance between reasonable and transparent prices versus the freedom for entities selling equity pre- and post-trade data, such as RMs, MTFs, and APAs (bottom-up). The hybrid EU approach is somewhat comparable to the MiFID I approach for publication and consolidation of equity pre- and post-trade data (see paragraph 2 above). The EU intervenes with rules on equity pre- and post-trade data prices, but only in a mild manner. The situation might change in the future due to the MiFID II Review. ESMA and some market participants are supportive of further intervention in the area of equity pre- and post-trade data prices. If accepted, these views would result in a very broad notion of what EU equity pre- and post-trade transparency regulation is. This is because data prices touch upon other areas of EU law, including competition law and intellectual property law. To support these findings, the section below provides a summary of the EU approach for equity pre- and post-trade data prices. The summary is followed by the consequences of the ISD, MiFID I, and MiFID II.