Banks open bond front in European data price battle

London — Bond market data prices have risen in half over the past five years, which could leave some users out of the market and impair liquidity, industry group AFME said Thursday.

Large banks and asset managers have already stated that data on equity trading is too expensive, a complaint rejected by the exchange, and the European Financial Markets Association (AFME) is also targeting the cost of fixed income data.

The European Union is keen to deepen capital markets after the UK leaves the block and proposes an “integrated tape” that allows real-time fixed income and equity transactions to be collated and accessed for liquidity and transparency. Did.

The UK has also highlighted the Bond Tape program, but the tape itself does not solve the underlying problem of data costs, AFME CEO Adam Farcus said in a statement.

“Leaving it untouched can force some market participants to minimize data purchases, which in some cases can lead to strategic decisions to withdraw from a particular market. There is also sex, “Farkas said.

AFME has commissioned a report from Expand Research on fixed income data prices using information from 10 leading market makers, all AFME members, and other sources.

Costs are rising regardless of the number of market users, due to price increases and changes in the charging structure, the report said.

The cost of fixed income data that market participants use to find the best deals across the market for their clients is rising faster than stock data, he said.

While banking sector complaints about stock price data focus on exchanges, bonds rely heavily on non-exchange price data from terminals and research and analysis, according to the AFME report.

AFME said it needed a standardized pricing model for purchasing data, a unified storage format, and consistent steps to access the data.

The Financial Conduct Authority of the United Kingdom announced a shake-up of financial market data in January because of “limited competition”.

Hugh Jones