Copenhagen Economics has conducted a study on how to achieve reasonable pricing of financial market data in practice. The study is commissioned by the Danish and Swedish Securities Dealers Associations with the purpose of providing a thorough foundation for a response to ESMA’s consultation process on MiFID II/MiFIR. The background is the concerns being raised that prices of financial market data have been ‘too high’. The reason for this is that trading venues – such as stock exchanges – hold significant market power in the market for financial market data. This has been recognised by the Commission, who is now exploring – together with ESMA – different regulatory options to ensure that prices become more in line with ‘reasonable commercial basis’.
In this paper, we explore the most promising avenue for regulation – a cost based regulation of pricing – and suggest how such a model can be developed in practice.
For further information, please contact Partner Sigurd Næss-Schmidt