20/4/2023

BVI’s position on MiFIR trilogue

The German fund industry – as a representative of the buy-side – needs the equities/ETF and the bond consolidated tapes (CT). Only the inclusion of both real-time pre-trade and post-trade data in the equities/ETF CT will allow Europe to move closer to a Capital Markets Union (see position paper). Specifically:

•  Voluntary consumption of the CT data is key to avoid the risk of creating an expensive new market data monopoly.
•  The link between the consumption of the CT and best execution needs to be removed.
• Revenue sharing of the equities CT should be limited to real-time pre-trade data from all contributors. Both the CT and direct market data feeds should be subject to a primarily cost based priced offering, under the Reasonable Commercial Basis principle.

The German buy-side core priorities in relation to the trilogue aim to ensure that the EU will develop an internationally competitive and efficient Capital Markets Union for the benefit of investors and companies. The buy-side main priorities – besides a viable real-time and pre-trade equities CT – are the removal of Article 26 transaction reporting on AIF/UCITS, cost-based market data pricing rules, and liquidity protecting bond deferrals on large trades. In addition, we continue to support in full sell-side demands not to restrict the use of waivers, deferrals, and Systematic Internalisers (SI) to keep liquidity in the EU which the sell-side associations AFME and EFSA criticised and have joined us and the trading venue operator CBOE in supporting the equities CT. Additionally, BVI welcomes that CBOE is ready to offer a pre-trade data equities CT.