The Market Model Typology (MMT) initiative is a collaborative effort established by industry participants to improve the quality of post-trade data through the use of standards for post-trade transparency. The work conducted has built on some earlier advice from ESMA’s predecessor CESR.
In the context of changing EU regulation, MiFID II proposes regulatory intervention to improve post-trade information and reduce costs and EU regulation aims to:
- Improve the quality of raw data and ensure it is provided in a consistent format through more standardised trade reports and by mandating OTC trade publication via an APA (Approved Publication Arrangement)
- Reduce the cost of post-trade data for investors through unbundling of pre- and post-trade data
- Introduce a European Consolidated Tape
MMT introduces a standard set of codes for equities post-trade data, making it easier for market data to be compared and consolidated by investors.
MiFID II proposals call for provision of consolidated post-trade data to be available for an instrument from all the EU venues where it is traded, on- or off-exchange. So, rather than participants having to consolidate this data from numerous sources themselves, data would be available as a consolidated tape. Standardisation of trade data is a pre-requisite for effective data consolidation and the MMT industry standard maps legacy trade flags to a common code.
MMT takes the form of a data model and cross reference table which maps trade flags across securities exchanges, MTFs and OTC reporting destinations to a set of standard single character enumerations (the native code includes 10 characters) and is currently endorsed by trading platforms and reporting venues, as well as the major market data vendors.
MMT is gaining industry support and its broad implementation is envisaged under FIX Trading Community governance. ESMA is aware of the MMT standard and has mentioned it in the MiFID II discussion paper. Market participant responses to the consultation are generally in support of adoption. Whether this will lead to regulatory endorsement of the MMT under MiFID II is yet to be seen. In the meantime, venues and reporting destinations continue to adopt MMT, for example BATS Chi-X Europe, BXTR off-exchange services and the BOAT/Cinnober OTC trade reporting platform.
Until MMT is fully in place the Fidessa Fragulator continues to provide a consolidated view of equities post-trade data using existing arrangements.
Last updated 18th December 2014