Trading | Market data


Market data: Toogood to give up?


The lack of transparency of market data tariffs seems to be a widespread complaint. Roger Aitken canvasses industry opinion to see if a more holistic approach can be found.


Exchanges ‘milking’ member firms has been a cry made by industry players on both the buyside and sellside in recent years. Back in June 2008, Clive Furness, Managing Director of Contango Markets, a commodities consultancy, remarked in a Highdeal roundtable in London that a “huge number” of end users of stock and derivatives exchanges were being confronted by a “bewildering array” of pricing tariffs – linked to outright price but also the speed of execution and latency. Furness even referred to one unnamed


exchange where their pricing tariffs stretched across “10 columns on a single page and ran to 11 pages” just for financial products.


Best Execution | Summer 2013 Since then and with the arrival of MiFID in


Europe a plethora of exchanges and MTFs sprang up. For UK equities alone there were at one stage 19 separate trading venues and Europe became home to 27 exchanges and 19 MTFs. Trade execution fees for equities shrank to an average today of around 0.2 basis points (bps) versus 2.0bps pre-MiFID. Against this backdrop the exchanges sought


to find inventive ways to boost revenues. Here the London Stock Exchange Group’s (LSEG) 2013 annual report offers an insight. It reveals that its information services business segment generated £306.3m, or 36% of the exchange’s


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