MiFID II, which is anticipated to come into effect on January 3, 2018, will have a far-reaching impact on the financial markets not just in Europe but globally. Included in the new regulations are measures to improve transparency and promote better trading by making market data more accessible. As such, MiFID II requires that market data providers offer pre-trade and post-trade data in an unbundled package. While ESMA continues to finalize the RTS and ITS, Nasdaq has already begun to plan for a full suite of pre- and post-trade packages across all asset classes. So here are a few points to keep in mind while preparing for the new regulatory environment.
A La Carte Data
Commencing with the launch of MiFID II, trading venues will offer data a la carte. To the extent necessary to comply with such regulations, Nasdaq will offer separate, unbundled pre-trade and post-trade data packages for each asset class, which may include equities, derivatives, fixed income and commodities. Customers will be able to choose from the available new packages according to their individual needs and priorities. These products will be available alongside our current products that continue to be an instrumental part of our portfolio, including Nordic Equity Last Sale (post trade), which already offers customers level of disaggregation. Additionally, our unbundled pre-and post-trade packages will be made available via the Genium Consolidated Feed (GCF) which is a system designed to package data.
Real savings through netting could offset potentially higher data costs. Nasdaq will therefore continue to extend our leading and affordable netting program and provide customers with direct cost savings in all asset classes.*
The good news is that transparency should improve significantly. New data packages and products combined with more OTC flow coming into the lit markets will enable participants to glean much better market insights. Once the new data reporting services come into full swing, it will be easier for customers to aggregate data across venues – a capability that is sorely lacking today.
Implementation strategies will vary across organizations. The final Regulatory Technical and Implementing Standards (RTS) are scheduled for release in June 2016. Nasdaq has been following the developments of MIFID II closely and is prepared to move forward when the rules come into effect. We have been working diligently internally as well as consulting with key stakeholders to formulate a highly competitive market data offering.
Importantly, we are committed to keeping our customers informed once we have more clarity on timing and implementation. For more information, contact us at Marketdata.firstname.lastname@example.org.
*Savings for each customer will vary