Market Data and Trading Costs

Markets Media – In a story about market data costs, Healthy Markets Executive Director Tyler Gellasch is quote as saying “As exchange data is a fixed cost for all market participants, the highest-volume banks and market makers end up trading for low cost or no cost, while smaller firms subsidize the largest firms and may get squeezed out and forced to consolidate.” Mr. Gellasch further said  “Exchanges have an obligation to maximize profit for their shareholders, which means maximizing the prices that they charge,” he said. “I don’t believe there’s a way to cure that conflict of interest if exchanges are still in charge of the SIP.” “The best path for regulators is to go back to the future. The Exchange Act and its amendments say exchange rules have to be non-discriminatory and can’t be undue burdens on competition, and fees have to be reasonable and equitably allocated. The Commission seems eager to do this.” (Full Story).

Reader Interactions