5.VII.4.1 General

The ESMA MiFID II Review also examines several data-driven elements of the MiFID II equity pre-trade transparency regime. As examined in section VI, MiFID II requires a lot of data to be send to NCAs or ESMA for the sake of the MiFID II equity pre-tade transparency calculations. ESMA states that one clear benefit here is ‘that NCAs and ESMA have more data at their disposal to monitor market developments and assess how the Regulation (MiFIR) is working in practice’.1 There are also downsides. The data-driven nature has made the MiFID II equity pre-trade transparency regime highly operational in nature. ESMA seeks to simplify the current MiFID II equity pre-trade transparency regime, in particular the double volume cap mechanism. Furthermore, ESMA and several market participants identify quality issues with the ESMA IT systems (FIRDS/FITRS).2 These elements are part of the MiFID II Review.