The ripple effect of MiFID III on market data costs

asked by u/sarah55 · 16h · 2 answers

Been pondering the potential impact of an eventual MiFID III revision, specifically around market data and reporting obligations. MiFID II certainly tightened things up, but I'm curious if anyone has been running scenarios on how further unbundling or even more granular reporting requirements could disproportionately affect smaller European brokerages or prop shops. The operational lift and associated data costs could become a real barrier to entry or scalability.

From a risk perspective, the increased complexity of managing various data vendors and ensuring compliance across all those streams is also something that keeps me up at night. Are there any clear signals out of Brussels or national regulators on their leanings for the next iteration?

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  • u/siripornrattanakorn· 1 pts· 15h

    ผมคิดว่าประเด็นเรื่อง unbundling น่าจะส่งผลกระทบต่อโบรกเกอร์เล็กๆ และ prop shops อย่างที่คุณว่าครับ เพราะต้นทุนการจัดการข้อมูลและการปฏิบัติตามกฎระเบียบที่เพิ่มขึ้น อาจจะทำให้เสียเปรียบรายใหญ่ๆ ที่มี resource เยอะกว่า

  • u/swang· 1 pts· 15h

    That's a very prescient point. While MiFID II aimed for greater transparency, the unintended consequence of increased market data costs, especially for smaller firms, is undeniable. I wonder if MiFID III will attempt to address this by introducing tiered reporting requirements based on trading volume or assets under management.

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