4.II.1.4 Might RMs and MTFs publish pre-trade data beyond MiFID I?

A question is whether RMs and MTFs were permitted to publish more and/or faster equity pre-trade data than MiFID I prescribed, that is – be stricter than MiFID I? At first sight, publication beyond the MiFID II equity pre-trade transparency obligations does not raise any objections, since it could enhance liquidity and investor protection (reduce information asymmetry and enable achievement of best execution-obligations). However, if RMs or MTFs in a particular Member State voluntarily publish more and/or faster equity pre-trade data this could in theory jeopardize the European level playing field.

Although this argument can be made, I have objections against such a view. Main objectives of MiFID I were investor protection and the ‘smooth operation of securities markets’.1 MiFID I stated that transparency about trades was necessary to achieve these objectives.2 If an RM or MTF wanted to publish more and/or faster equity pre-trade data than MiFID I prescribed, there could accordingly be little objection to this.3 A similar view was reflected in CESR’s advice in drafting MiFID I. CESR advised ‘a minimum level of pre-trade information’ to be made available under MiFID I.4 The CESR advice indicated the possibility for RMs and MTFs to publish equity pre-trade data beyond the MiFID I standards.