On 26 February, FIA responded to an International Organization of Securities Commissions (IOSCO) consultation on access to market data in secondary equity markets. FIA’s response reflected the perspective of clearing and exchange members (i.e. market data users) in relation to exchange-traded derivatives.
FIA noted that the topic of market data is relevant beyond the cash equities markets, including in the context of exchange-traded derivatives. Mandatory consumption and use of market data for regulatory purposes have increased dramatically in recent years and, at the same time, market data fees charged by derivatives trading venues have increased significantly. These dynamics create challenges including burdensome barriers to entry for market participants.
To address these concerns, FIA clearing and exchange members call for real-time market data to be made available free of charge, and for market data that they use for investment and trading/commercial purposes to be available on a reasonable commercial basis.
FIA notes that regulatory oversight of market data is inconsistent across jurisdictions and encouraged IOSCO to consider a mapping exercise to identify these jurisdictional differences.