FESE Response to the ESMA Consultation on RCB and RTS 23

Reasonable Commercial Basis

FESE members understand that ESMA aims to establish a more structured and transparent approach to market data pricing. While FESE members support this objective, it is crucial to carefully calibrate the various provisions to avoid a restrictive approach that could have unintended consequences for the market and its participants.

In our response, we welcome some of ESMA’s proposals that incorporate a principle-based approach and share thoughtful input on others that we consider may benefit from further embracing this approach. Overall, we should not lose sight of the broader pricing models in financial services that ensure data access for all types of users, as well as the existence of varying business models among exchanges, in which market data is an integral part. We must also remain mindful of the unique characteristics of market data as both a digital product and a joint product with trade execution, and ensure that market data quality continues to be the driving goal. We are ready to collaborate with regulators and policymakers to effectively shape these RTS.

RTS 23

FESE welcomes ESMA’s proposals related to RTS 23. We support the effort to streamline reference data reporting requirements and offer further suggestions in this regard. We would also appreciate clarification on several new fields, as well as the resolution of long-standing issues related to the misclassification of CFI codes, among other aspects.