Thomson Reuters consults with the buy side to identify 14 concrete proposals for improving the compilation of consolidated data and presents a call to action on parties to find solutions.
The White Paper covers the following:
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- The buy side considers the cumulative cost of fees charged by exchanges, and trade reporting services is a significant barrier to adoption of a consolidated tape, and a detriment to overall transparency. We suggest there should be a more modular approach to data pricing that is underpinned by regulatory intervention.
- The coverage and quality controls around MiFID trade publication need to be formalised and enforced to instil market confidence and trust. We make several suggestions to improve trade publication. To be successful, the institutional buy-side, brokers and trade reporting services will need to reach agreement on standards, and these rules will need to be codified through MiFID 2 regulation.
- Best execution monitoring has been hampered by shortcomings in the provision of the source data contributing to a consolidated tape and by inconsistencies of approach to benchmark calculation between information vendors. In this document, we openly share our TCA formulas and methodology. We now call upon other vendors to join in defining industry standards for data consolidation and TCA measurement.