Financial Regulatory Forum

Europe accord on consolidating share data urged

LONDON, Jan 20 (Reuters) – Europe’s data companies, investors and brokers should reach an agreement on consolidating reporting of share prices to help unify fragmented markets, said news and data vendor Thomson Reuters.

“To be successful, the institutional buy-side, brokers and trade reporting services will need to reach agreement on standards, and these rules will need to be codified through MiFID 2 regulation,” Thomson Reuters said in its paper.

A European Union law known as MiFID was introduced in 2007 and sparked increased competition in share trading so that investors can trade the same stock on different platforms more cheaply.

But it also fragmented share price information and sparked calls for a “tape” that would gather share price data from all the rival platforms and exchanges to give investors an overall picture of the market, as in the United States.

Thomson Reuters, which competes with Bloomberg, Fidessa, ITG and others in selling share price data, said a more modular approach is needed to data pricing, underpinned by regulatory action.

Government intervention said unlikely in EU share-data fragmentation

By Huw Jones
LONDON, Sept 8 (Reuters) – Fragmentation of share trading data makes it harder for European investors to spot the best prices but there is no appetite so far for public intervention, industry officials said on Tuesday.