Wider adoption of MMT encouraged

The Securities and Markets Stakeholder Group (SMSG) recently advised ESMA to promote wider adoption of the Market Model Typology (MMT) post-trade data standards. The SMSG, which facilitates consultation between ESMA, its Board of Supervisors, and stakeholders, is encouraging a wider use of MMT to address MiFIR transparency.

The MMT initiative is a collaborative effort established by industry participants to improve the quality of post-trade data using standards for post-trade transparency. This industry standard is already being widely used by venues and market participants to map legacy trade flags to a standard set of codes, making it easier for published market data to be compared and consolidated by investors.

As a longtime proponent of data standards and member of the MMT steering committee, we’re pleased about this advice. Extending the MMT to all EU execution venues will ensure that standard flagging takes place. Quality and consistency of reporting and flagging are at the heart of a successful MiFID 2 transparency regime. With standardisation of trade data a prerequisite for effective data consolidation, this would bring us one step closer to ESMA’s goal of a consolidated tape.