On Wednesday 28 August, AIMA responded to the European Securities and Markets Authority's (ESMA) consultation paper on an RTS on reasonable commercial basis.

The response highlights several principles for ESMA to consider when finalising the RTS:

• Ensure robust supervisory oversight of market data fees;
• Ensure that market data fees are not based on the value that the market data represents to individual users;
• Ensure that investment managers are not limited in their choice to purchase market data, particularly real-time data, and ability to switch to different market data providers;
• Maximise the comprehensiveness and comprehensibility of market data providers’ disclosures;
• Ensure data users are not subject to complex and onerous licensing terms;
• Ensure that the audit practices of market data providers are fair and reasonable;
• Ensure that the broader policy objectives of reducing the average cost of market data and making data available to a wider range of market participants are considered; and
• Ensure an openness to conduct future regulatory change if the RTS does not deliver on its objectives.

ESMA will publish a Final Report and submit the draft RTS to the European Commission by 29 December 2024.

If you have any questions on the EU's MiFIR/MiFID II Review, please contact Aniqah Rao.