21 Feb 2018 Fee Fight: Ye Olde Market Data Battleground
Market data fees charged by exchanges continue to be a bone of contention for banks, electronic trading firms and asset managers. And although recent events playing out in the US are adding fuel to the fee fire, frustration levels are rising in Europe too, as Kirsten Hyde reports.
Market data is becoming one of the biggest battlegrounds in the equities market, with banks, trading firms and asset managers uniting against a common adversary: exchanges, which they accuse of indulging in monopolistic practices and raising their fees significantly—particularly for market participants with whom they are often in direct competition—while not being totally transparent about the costs related to producing data, access to which has become a necessity in today’s world of complex trading strategies.
While calls to US regulator the Securities and Exchange Commission (SEC) to scrutinize how exchanges’ market data fees are determined have focused the limelight on data fees in recent months, trading firms in Europe are now turning up the heat on an issue that has been playing out between brokers and exchanges in equities for years.