Here come the fees! Paywall https://www.wsj.com/articles/nasdaq...ver-market-data-11657056514?mod=hp_lista_pos5
A federal court partly rejected a Securities and Exchange Commission plan to loosen the control that stock exchanges have over public market-data feeds, handing a victory to Nasdaq Inc. NDAQ 1.22%▲ and the New York Stock Exchange. In a ruling released Tuesday, a three-judge panel of the U.S. Court of Appeals for the District of Columbia Circuit found that the SEC had exceeded its authority under federal law when it issued a 2020 order overhauling the governance of the data feeds. The ruling vacated a key provision of the order, in a blow to the agency’s efforts to rein in the fees that exchanges charge for market data. Brokers and trading firms have long complained they pay too much for such data, and they say exchanges exert monopolistic powers to keep prices high. Exchanges reject such arguments and have fought back in court at the SEC’s attempts to shake up the data business. An SEC spokeswoman declined to comment. NEWSLETTER SIGN-UP Markets A pre-markets primer packed with news, trends and ideas. Plus, up-to-the-minute market data. SUBSCRIBE The data feeds at the heart of Tuesday’s ruling—called securities information processors, or SIPs—broadcast real-time stock prices to investors. They are big business for stock exchanges, which collectively make hundreds of millions of dollars a year from the fees that brokers pay to access the feeds. For decades, exchanges have maintained close control over the SIPs due to rules giving each registered stock exchange a seat on the committees that manage the data feeds, and keeping other types of firms off the committees. The brokerage firms that buy SIP data say this system discourages needed improvements to the data feeds and keeps their fees too high. In 2020, the SEC approved an order shaking up the data feeds’ governance structure. A key part of the order would have given seats on the SIP committees to other stakeholders, such as institutional investors and brokerages serving individual investors. But Nasdaq, the NYSE and exchange operator Cboe Global Markets Inc. CBOE 2.41%▲ sued to block the SEC’s order, arguing that the agency had violated the law. On Tuesday, federal judges agreed—at least in part. Writing for the panel, Judge Karen LeCraft Henderson vacated the provision of the SEC order giving seats on the SIP committees to representatives of non-exchange firms. She agreed with NYSE, Nasdaq and Cboe’s argument that federal law only allowed the data feeds to be run by the exchanges and the Financial Industry Regulatory Authority, which also has a seat on the committees. The provision is “unreasonable and therefore invalid,” Judge Henderson wrote. But the judges left other parts of the order in place. They refused to vacate a separate provision limiting the voting power of large exchange groups that own multiple marketplaces. The judges also left in place another provision that had been contested by the exchanges, under which the firms that administer the SIPs must be independent of exchange groups that sell stock-market data products. Currently, the country’s two SIPs are administered by NYSE and Nasdaq, and the provision would dislodge them from that role. Nasdaq, NYSE and Cboe declined to comment. The Investment Company Institute, a trade group for fund managers that supported the SEC’s order, was disappointed by the court’s decision on adding nonexchange representatives to the committees, an ICI spokesman said. But he added that “we are pleased to see that the court recognized the importance of an independent plan administrator.” On the whole, Tuesday’s ruling was a win for efforts to reduce exchanges’ entrenched advantages in the market-data business, said Brett Redfearn, a former SEC official who played a key role in crafting the 2020 order. “This is not an all-out loss,” Mr. Redfearn said. “This is more of a double or triple instead of a home run.” Advertisement - Scroll to Continue
In other news, institutional/corporate-level market data from exchanges/index vendors will raise by 5-8% this year (same increase band as the last few years, for effectively no change in content). Yet, retail-level vendors charge the same rates the same as 10+ years ago. It's a fun business I'm in (!).
when exchanges went public that was the end of their purpose of existing to serve its members and transitioned to get the stock price higher. exchanges should be non profit entities
One thing is charging for L2. But L1 is a joke, nowhere else do you get charged for getting the most basic price information.
And "innovation" is a joke. A monkey could build an order-matching engine and disseminate a data feed. CME can't even figure out how to offer a crypto future which trades 24/7 (or at least 23/7). The exchanges harvest gargantuan 50%+ profit margins thanks to brand goodwill and network effects. Any year they see a profit margin more than say 10%, they should be legally required to reduce fees.
The CME is a Futures exchange. They are closed on Saturdays in the Western hemisphere. Sorry you do not agree with it, but that is how they roll.
%% WITH all due respect\be thank ful they offer any kind of trading on crypto cr*p. Trading comissions have ben downtrending so much in last 20 years, i dont believe in overregulation with SEC or any kind of profit controls/that'$ what free enterprise is all about. IT would have to be a smart money/i mean smart monkey to build an order matching engine + data feed /LOL Good uptrend on NDAQ , looks like the market liked the victory. But real dumb NDAQ rule requiring a certain % of company officers to be female...........................................