19.IV.1 Successful areas

First, under the ISD RMs and some alternative trading systems published a high amount of equity pre- and post-trade data and in due time. Data quality was overall high. Data was available in a consolidated way and at relatively low prices, given the concentrated market setting. However, these positive effects were mainly the result of the optional ISD concentration-rule and national law that covered high standards for equity pre- and post-trade transparency. The broad and minimum harmonised ISD equity pre- and post-trade transparency rules had only limited effect.

Second, a main area of success is the increase in scope of equity instruments from MiFID I to MiFID II. The result is more equity pre- and post-trade transparency compared to MiFID I. Third, cross-border activities are cheaper due to the harmonised EU approach for equity pre- and post-trade transparency regulation. Fourth, investor protection and the level playing between trading platforms increased, although several concerns remain, most notably too limited equity pre-trade transparency, no consolidated tape, and too high equity pre- and post-trade data prices.

Fifth, the MiFID II rules for mandatory publication of equity post-trade data result in sufficient amounts of equity post-trade data being published on a timely basis. However, concerns have been raised about equity post-trade data quality from APAs. Sixth, there are more SIs under MiFID II. Although the growth in SIs is controversial, the growth of SIs was envisioned by MiFID II through the new SI-definition. Seven, the double volume cap limited dark trading under MiFID II. The double volume cap resulted in suspensions of waivers for dark trading. At the same time, the double volume cap is controversial in light of complexity, the thresholds, and loopholes.

Finally, a main success of the increase of EU equity pre- and post-trade regulation is that the EU has more data at its disposal to monitor market developments and adjust the equity pre- and post-trade transparency rules if deemed necessary. This is the result of more EU rules on data collection, calculation, and publication for the EU equity pre- and post-trade transparency regime.