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Will financial market data be sufficiently consolidated and of high enough quality under MiFID?
Journal of Securities Operations & Custody,
1
(2),
184-194
(2008)
Abstract
The opening up of the market for equity market data raises the question of whether data will be sufficiently consolidated and of high enough quality post-MiFID, or whether it will become too fragmented, thereby hindering price transparency and the implementation of best execution policies. This paper outlines the market for financial market data, the provisions of MiFID, and the implementing measures regarding financial data and data consolidation. It also looks at the approaches taken by the Committee of European Securities Regulators (CESR), the UK's Financial Services Authority (FSA) and the US authorities. It concludes that markets should be capable of adapting, that additional licensing requirements, such as those proposed by the FSA, are, in fact, premature and act as a barrier to the single market, and that neither would a US-style monopoly consolidator be needed in this case.
Keywords: MiFID; financial market data; data consolidation; best execution
The full article is available to subscribers to the journal.
Author's Biography
Karel Lannoo is Chief Executive of the Centre for European Policy Studies (CEPS) since 2000 and Senior Research Fellow since 1997. CEPS is one of the leading independent European think tanks, with a strong reputation in economic and foreign policy research. Karel has published some books and numerous articles in specialist magazines and journals on general European policy, and specifically financial regulation and supervision matters. He has spoken at several European Parliament, Commission and related institutions’ hearings and also participated in studies for national and international bodies (EU institutions, OECD, ADB, World Bank). Karel is a regular speaker at international gatherings and in executive programmes. Before joining CEPS, he was employed in the cultural sector, worked for the Italian conglomerate Ferruzzi and for a professional federation. Karel was also active as a freelance writer for several specialist financial sector publications. He holds a baccalaureate in philosophy and an MA in history from the University of Leuven, Belgium (1985) and obtained a postgraduate in European studies (CEE) from the University of Nancy, France (1986). Karel is an independent director of Bolsas Y Mercados Espanoles (BME), the company that runs the Madrid stock exchange. He also directs the European Capital Markets Institute (ECMI) and the European Credit Research Institute (ECRI), both separate legal entities that are managed by CEPS.
