MFA submitted a letter urging the European Securities and Markets Authority (ESMA) to preserve execution choice and reduce market data costs to strengthen EU equity markets.
MFA explains that:
- EU equity markets remain competitive and resilient, and recent shifts in trading reflect healthy competition among execution methods rather than declining market quality.
- Investment managers rely on central limit order books, closing auctions, frequent batch auctions, and systematic internalisers to achieve best execution for investors.
- Restricting certain execution methods or directing order flow toward a single model without evidence of harm would reduce competition, limit innovation, and increase investor costs.
- High market data, connectivity, and licensing costs make it more difficult for investors to identify and access liquidity across EU markets.
- The existing reasonable commercial basis standard has not prevented market data costs from continuing to rise.
- A comprehensive, reasonably priced EU equity consolidated tape would improve transparency and help investors access liquidity across venues and execution methods.
