Euronext NV is reportedly considering changes to its scheduled overhaul of data fees, which has drawn criticism from various market participants. The exchange operator's initial plan to update its pricing structure, in response to new European Union regulations, led to complaints about potentially uneven pricing and higher costs. This sentiment was particularly strong among alternative trading venues that compete with Euronext.
Several leading banks have voiced strong opposition to the proposed price hikes, arguing that the increases are unjustified and could negatively impact market transparency. A group of banks collectively urged Euronext to rethink the increases, warning that such changes would likely lead to increased costs for investors and potentially decrease market activity. These institutions highlighted that crucial market data is vital for algorithmic trading, risk management, and compliance, and higher costs might compel some firms to reduce their use of Euronext's data.
Euronext has defended its pricing strategy, citing the need to improve the quality and delivery of its technology and infrastructure. However, critics suggest that Euronext is exploiting its dominant position in several markets. The European Securities and Markets Authority (ESMA) has previously advocated for greater transparency and consistency in how exchanges structure their market data fees. The dispute over these fees has attracted significant attention, and the outcome could impact other market participants.
