A comprehensive source of equities trading data is one step closer to becoming a reality as the European Union agrees on the terms of the data stream.
Referred to as a consolidated tape, the data source will serve as the golden source of data in equities trading.
According to a person familiar with the matter, the agreement between the three legislative bodies of the EU will mean the tape will be real-time. It will also include pre-trade data and be anonymised for details relating to the best bid and offer.
The agreement on the consolidated tape is part of wider negotiations around MiFIR/MiFID II between the EU Commission, Council and Parliament.
The inclusion of pre-trade data was seen as paramount by traders. The major European exchanges were lobbying against the inclusion of pre-trade data, arguing it would lead to front-running and arbitrage.
"The MiFIR agreement is a positive step for the competitiveness of EU capital markets and the broader European economy,” said Taggart Davis, head of EU government affairs for the Managed Funds Association.
“It supports broader, cost-effective access to market data, which enhances the ability of alternative asset managers to deliver reliable returns for their investors, including EU-based pensions.”
The tape will be provided on a “reasonable commercial basis” so that it is economically viable and less costly to traders than the current arrangement, and by a vendor who is yet to be determined.
Traders have previously told Financial News that pre-trade data would help reduce data costs. Instead of buying data from multiple vendors., they can now purchase data from one source.
The MiFIR/MiFID II agreement will also see the EU ban payment for order flow.
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