Consolidated Tape
AFME has been a long-standing proponent for the creation of a Consolidated Tape (CT) for both equities and bonds. We believe that the provision of an appropriately constructed tape could facilitate access to a common view of the market to all investors, irrespective of their resources and level of sophistication, providing a comprehensive and standardised view of trading environments in both the EU and UK.
The commercial viability of the equities CT will be essential to its ultimate success. It is therefore critical that the CT includes pre-trade data. A CT with real-time continuous data available to five levels of book depth and with full attribution will be more attractive to users and more likely to become economically self-sustaining.
On the consolidated tape for bonds, it is important that efforts to address data quality remain ongoing so users of the tape have confidence in its output. AFME is closely monitoring the developments as the EU and UK move through the competitive tender process.
Market Data Costs
AFME and our members strongly believe that market data is critical for empowering the decisions of issuers and investors, providing them with the confidence needed to make investment decisions and valuations. Intermediaries supporting these stakeholders must also consume, analyse, and store data to make informed decisions, develop new products, and adhere to regulatory requirements.
Analysis indicates that the cost of equity market data, including at major exchanges, has dramatically increased since 2017, and that issuers and investors, who rely on this data for their day-to-day activities, are facing significant financial burdens.
There is also a persistent and accelerating rise in fixed income market data costs, with overall spend increasing by 44% over six years, across data feeds, research and analytics, and ratings.
Despite these challenges, the need for comprehensive and reliable market data remains critical for informed decision-making in capital markets. AFME continues to monitor developments around market data costs.
