Just a clarification on the NYSE Open Book issue: NYSE has only two possible definitions of data - controlled device, such as a trading platform, and data feed recipient. Anyone who is a data feed recipient, even if they are not a market data vendor and receive market data only for their trading purposes, has to pay as much as a data feed vendor to NYSE, 5k for OpenBook and around 1750 for L1/time and sale. This is because the definition was written before someone could get data this way, before the advent of black boxes. NYSE is enforcing this streetwide - Genesis, Lime, Assent, IB, Sterling, etc. At the same time, NYSE understands that the definition should also encompass subscribers who get data to trade using a black box, not to redistribute, and is working with their regulators to add that definition to their policies as well as adjust their pricing. We agree the $5000 and $1750 / month creates an enormous burden on the API/Blackbox. Genesis is talking to the NYSE to try to alleviate the charge for $5000 and also the $1750 for SIAC for API and blackbox, and to get the cost down, we feel NYSE will lose market share with this type of charge.
If it's a streetwide charge, then how come I can get the data from RealTick without paying that much? Sounds like NYSE has targeted certain types of brokerage firms.
Pardon my ignorance but what your saying is if mom and pop have an ameritrade account they have to start paying 1750 a month or they get no nyse data!!! wtf? I'm confused.
I hope NYSE implements this and NAZ doesnt, so NYSE can see their volume dry up to nothing, and NAZ can laugh all the way to the bank with its new found volume. Ill drop NYSE trading like a hot potato if they try to pull this nonsense.
Actually, the CSQ (consolidated quotation system) is what your typical retail firm reports I guess. The NYSE charge is different. From their website: **************************** firms will be provided a complete liquidity picture containing both depth of book and best market quote interest directly and more efficiently than ever before. The NYSE best market quote differs from top of book information in that it contains not only limit orders on the book but specialist and Floor broker interest that is not on the book.
Again, this goes back to NYSE's arcane pigeonholing of customers, customer's which have evolved to use machines to interpret the feed, not a display....and are thus being counted as professionals if using a "device". There are a lot of contradictions in the NYSE data fee structure, which don't account for non-pro customers using an API and "devices". I've executed close to a billion shares at NYSE over my career, but would have no problem dropping all NYSE datafeeds and also route away given the charges and arrogance of implimentation of these exorbitant charges for individuals who are not re-distributing. The market is so fragmented now, and NYSE has lost so much volume, for the first time possible, you can actually drop NYSE and see little impact. My understanding is that NYSE has realized how their customers will responded to this attempted charge, much in the same way I would, and thus, will not attempt to apply these charges to API customers. You should be seeing more info on this in a couple weeks, hang tight until then fellas, and don't get too worked up just yet.
I wouldn't count on a reversal of their stance in the short term. The NYSE has just gone through the process of forcing these fees down the throats of a few of the brokers mentioned. At least one other broker I know of has had these fees in place for at least 6 months. I'm hoping to find a broker that is still under NYSE's radar. Please PM me if you know of any.