Guiding Principles for Data Sharing: A Perspective for European Capital Markets

Executive summary

Data sharing, or the transfer of data between market participants, public authorities and individuals, is essential to the smooth functioning of capital markets. Each day significant volumes of data are transferred between market participants for the purpose of trade execution, regulatory compliance, business operations and the provision of client services.

In this context, AFME and its members see significant opportunities for greater and improved data sharing within European capital markets, to enable Financial Institutions (FIs) to realise benefits relating to:

• new client products and services,

• improved operational and cost efficiencies,

• enhanced security, resilience and surveillance,

• streamlined regulatory reporting and compliance, and

• innovation and sustainability.

We note that European Union (EU) authorities have similarly identified that data sharing can support the development of competitive European markets. In February 2020, the European Commission published a ‘European Strategy for Data’1, outlining several regulatory proposals to facilitate the flow of data across EU sectors and establish an EU single market for data. We welcome this initiative as an opportunity to support digital innovation in European capital markets. However, we have also identified a number of barriers and risks which must first be addressed to ensure private and public sector buy-in for further data sharing initiatives. Key barriers and risks identified relate to:

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