(Bloomberg) --
Europe's sweeping market reforms have failed to lower the cost of data or improve transparency, and now regulators want to take another whack at solving the problem.
The European Securities and Markets Authority called for a real-time consolidated tape of information about transactions. That would help increase transparency, overcome Europe's fragmented trading systems and improve liquidity, according to ESMA's chairman Steven Maijoor.
The European Union's revised Markets in Financial Instruments Directive, or MiFID II, has shaken up the financial research industry. The latest rules, which kicked in Jan. 2018, make numerous changes including separate payments for analyst notes and trading commissions in a bid to make costs more transparent.
“After nearly two years of operating under MIFID II, we are still lacking a reliable view of liquidity across the EU,” Maijoor said in a statement. “Access to market data is becoming increasingly important for securities markets and it is important that data users know what they are paying for.”
ESMA said that a consolidated tape hadn't yet emerged because it's costly to build. The regulator said changing that will require a substantial investment of time and resources in Europe as well as changes to the law.
To contact the reporter on this story: Silla Brush in London at sbrush@bloomberg.net
To contact the editors responsible for this story: Ambereen Choudhury at achoudhury@bloomberg.net, Marion Dakers
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