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Asset managers and financial market data procurement: Pay or die!
Journal of Securities Operations & Custody,
12
(4),
302-319
(2020)
Abstract
This paper describes the issues asset managers are facing in financial market data procurement. It discusses possible short- and medium-term regulatory measures in the European Union’s Markets in Financial Instruments Directive/Regulation (MiFID/R), benchmark regulation and credit rating agency regulations (CRAR) to deal with the associated exchanges price, index and ratings data-procurement and usage issues, collectively referred to as financial market data (FMD). As first step, in the near term, increased supervision and enforcement of existing MiFID/R market data cost regulation by both European Securities and Markets Authority (ESMA) and National Competent Authorities (NCAs) could help to address somewhat the ongoing dispute between market data users on the buy- and the sellside and market data providers, mainly exchanges and market data distributors. Additionally, changes to applicable supervisory laws across the different regulated data providers, namely exchanges, benchmark providers and credit-rating agencies, are suggested to be implemented during the mandate of the new European Commission, which operates until 2024, to achieve a coherent regulation of FMD cost and transparency rules.
Keywords: market data; benchmark and index data; ratings data; data cost; data licence; EU regulation
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Author's Biography
Rudolf Siebel is responsible for Legal, Statistics and IT at BVI, the German asset management and fund industry trade association. He represents the interests of the fund industry on the Technical Committee at the German Federal Financial Supervisory Authority (BaFin). Rudolf was on the German Single Euro Payments Area (SEPA) Committee. He is Chair of the Trading, Reporting and Market Infrastructures Standing Committee of the European Fund and Asset Management Association (EFAMA). He has been appointed a member of the Financial Stability Board (FSB) working group ‘Private Sector Preparatory Group’. This working group advises the supervisory officials on the FSB on introducing and developing the Legal Entity Identifier (LEI). He is also Member of the German Asset Management Standards Committee (GAMSC) to support The Global Investment Performance (GIPS) Standards. Furthermore, he also was a member of the Consultative Working Group of European Securities and Markets Authority’s (ESMA) Post Trading Standing Committee. Rudolf was a member of the European Post-Trade Forum (EPTF) of the European Commission. He was Vice Chair of the international securities standardisation association, Securities Market Practice Group (SMPG). Previously, he was a Vice President — Senior Credit Officer with Moody’s Investors Service.
