SMFSC Calls for Reforms in Wholesale Financial Data Market

The San Marino Financial Standard Council (SMFSC) has published the findings of its recent review into the wholesale financial data market, concluding that while the sector plays a crucial role in supporting transparent and efficient trading, there is significant scope for improvement in how market data is priced, accessed, and distributed.

The council’s report highlights concerns that high data costs, limited competition, and inconsistent transparency standards are restricting smaller firms’ ability to compete on equal terms with larger institutions.
SMFSC has called for structural reforms and greater oversight to promote fairness and innovation within this vital segment of the financial system.

“Data is the lifeblood of modern markets, and equitable access is essential for efficiency and confidence,” an SMFSC spokesperson said.
“Our findings show that improvements are needed to ensure the market operates in the public interest.”

Key Findings: Concentration and Cost Inequality

SMFSC’s review found that the wholesale data market is dominated by a small number of large vendors, whose pricing structures and contractual terms often lack clarity and flexibility.
Some financial firms reported substantial increases in data subscription fees over the past three years, with smaller institutions citing difficulties in negotiating fair contracts or obtaining essential market feeds at sustainable prices.

The report also noted inconsistencies in licensing practices and data sharing arrangements, which can limit innovation in trading analytics, risk management, and fintech development.

“A lack of transparency in data pricing creates a two-tiered system,” SMFSC observed.
“Market access should not depend on the size of a firm’s budget but on its commitment to responsible participation.”

Recommendations for a More Competitive and Transparent Market

To address these concerns, SMFSC has proposed a series of measures to improve competition, affordability, and accessibility in the wholesale data market:

• Clearer disclosure requirements for data providers on pricing models and usage restrictions.
  
• Encouragement of alternative data providers to promote diversity and innovation.
  
• Standardization of licensing terms to simplify compliance and reduce barriers for smaller market participants.
  
• Regular monitoring and reporting of data cost trends and vendor concentration.
  

The council also called for stronger self-regulation among market data vendors, supported by a transparent dispute resolution framework to handle pricing or access disputes efficiently.

Balancing Innovation with Fair Competition

While SMFSC recognizes that data providers need to be fairly compensated for their products and services, the regulator emphasized that pricing must remain proportionate and transparent.
High data costs, it warned, risk undermining competition and efficiency, particularly in markets where timely access to information is critical for trading and risk management.

SMFSC reaffirmed its commitment to ensuring that innovation in data delivery—such as cloud-based distribution and open APIs—develops within an ethical and competitive framework.

Next Steps and Industry Engagement

The council will now engage with data vendors, exchanges, and market participants to gather additional feedback on its findings.
A consultation paper outlining specific policy options will be released in early 2026, focusing on potential pricing transparency rules and voluntary conduct standards for data providers.

SMFSC also intends to collaborate with international regulators and standards bodies to align its approach with global best practices on financial data governance.

A Step Toward Smarter and Fairer Data Regulation

By spotlighting inefficiencies in the wholesale data market, SMFSC aims to encourage greater accountability and fairness in how financial information is managed and monetized.
The council’s findings mark a proactive effort to protect market integrity while supporting innovation and accessibility for all participants.