Retail investors kept from European equity market data – Better Finance

Rick Steves

Equity market data is essential for “retail” investors to make informed investment decisions, but its most recent research found data published by the four largest EU equity markets online “are either totally or partially de facto not accessible for non-professional users.

FX Industry Europe

Better Finance is making the case the Capital Markets Union is at risk on account of European retail investors having less and less access to equity market data.

The European NGO reminded the trading industry that equity market data is essential for “retail” investors to make informed investment decisions, but its most recent research found data published by the four largest EU equity markets online “are either totally or partially de facto not accessible for non-professional users.

CBOE Europe, Goldman Sachs, TP ICAP UKMTF, and Deutsche Bourse (XETRA) were the four largest equity markets in Europe in 2019, according to ESMA.

The European Union requires equity trading venues (Regulated Markets and Multilateral Trading Facilities) to publish pre- and post-trade data that is accessible and understandable for end-users, free of charge, in a format that can easily be read, used, copied, and understood by the average reader, and respecting a maximum delay of 15 minutes.

ESMA has found that many equity markets fail to fully comply with the law, especially with regards to the timeliness.

Research by Better Finance found a dramatic shift away from EU-based “lit” regulated equity trading venues to less transparent and less retail investor-friendly non-EU based players.

The four largest equity markets disclose pre- and post-trade data to non-paying non-professional users, but does it very poorly, the ONG argues, as it includes unintelligible jargon and is buried deep within their platforms, only accessible through a maze of clicks and redirections or downloads of “csv” tables.

Guillaume Prache, Managing Director of BETTER FINANCE, said: “As stated by the European Commission, EU households are the main source of long-term financing for the real economy. For the Capital Markets Union (CMU) to succeed, individual investors and savers should be at the heart of the project and have trust in capital markets.”

To end the discrimination of consumers as “retail equity investors”, Mr. Prache called for access to market data, access to Pan-European collective redress, best execution of “retail” trade orders and prevention of conflicts of interests such as those generated by the practice of “payments for order flows”.

Read this next

Executive Moves

TopFX promotes Omar Al-Janabi to head of sales and business development

Prime brokerage firm TopFX has strengthened its Middle East operations with the promotion of Omar Al-Janabi, who is taking on an expanded role as global head of sales and business development.

Retail FX

Plus500 says 2022 revenue to be ‘significantly’ ahead of analysts’ estimates

Israeli-based, but London-stock market listed Plus500 said it expects annual revenue and earnings to be ahead of analysts’ estimates even as trading levels normalised from record volumes in the first quarter.

Digital Assets

Crypto derivatives giant BitMEX launches spot market

Crypto exchange BitMEX is looking to branch out of its singular focus on crypto derivatives with a suite of new product offerings. Although derivatives are to remain at the heart of BitMEX’s business, the popular platform will add spot crypto trading as it aims to aggressively grow their user base.

Uncategorized

PrimeXM reports mixed trading volumes for April

PrimeXM has reported weaker trading volumes for April 2022, in line with other institutional and retail platforms that saw the activity of their clients dropped compared to a month earlier.

Digital Assets

DLT Finance approved by BaFin to support brokerage and custody of digital assets

DLT Finance is already partnered with big names within the digital asset space, including Kraken, Bitstamp, B2C2, and Bittrex.

Institutional FX

LUKB taps vestr to launch actively managed products, AMCs

The partnership with vestr goes to show the growing importance of digitising the active investment management space.

Digital Assets

Jewel taps Tokeny to launch stablecoin-as-a-service solution on Polygon

Jewel aims to offer a stablecoin-as-a-service solution to other digital asset and financial institutions B2B, allowing those businesses to provide cheaper, easier and near real time payments with stablecoins issued and redeemable directly at the bank level at Jewel.

Industry News

SEC charges $410+ million Ponzi scheme with pre-IPO shares

We allege that the defendants deceived investors about the pre-IPO shares they held, how much they were charging in fees, and who was controlling the business—all while paying themselves more than $75 million.

Industry News

FNZ taps data analytics GIST to address ESG ratings bias

The allocation of capital is critical to driving the change required to transition to net-zero and building a more sustainable economy and society.

<