Market Data fees at the NYSE is $6000/month for trading systems. This is egregious. Market data should be free. For Gods sake, all the MD are generated by 401K money, on matching engines on computers. Talk about markup! This is so out of control I predict it will implode on its own weight. Equities are the biggest scam on earth: https://www.ctaplan.com/publicdocs/ctaplan/notifications/trader-update/Policy - CTA Non Display.pdf https://www.ctaplan.com/publicdocs/ctaplan/notifications/trader-update/CTA Non Display Use FAQ.pdf
I so wish I had the means to create my own ECN. It would have razor thin commissions. All market data would be just to support the technology fees.
You could route your liquidity-adding orders to IEX or CHX, both which charge nothing for data. If enough liquidity-adding order flow were to shun exchanges that charge big money for data, then it would limit the ability of any one exchange to charge much for this service.
If they are such good monopolists, we should consider the investment merits of the stocks: ICE, NDAQ, CBOE, CME, BATS, LDNXF, DBOEF, OTCM for starters
Sometimes market makers can find a way to get monopoly profits, too. ========== • Naked Shorts Can’t Stay Naked Forever (Dayen) A few years into his personal quest to understand how he had lost a million dollars on a penny stock, Chris DiIorio developed a sweeping hypothesis involving Knight Capital, the mammoth brokerage company that frequently traded in them. Knight earned $333 million in pre-tax profits in 2008, and another $232 million in 2009. But DiIorio didn’t think Knight was making that kind of money simply from executing transactions for clients. As a market maker, Knight was in the rare position of being able to legally sell a stock it didn’t have (the principle being that it will get that stock soon, so no worries). That’s called naked shorting. It’s illegal when regular people do it. DiIorio suspected that Knight, either on its own behalf or on behalf of clients, made a practice of artificially increasing the number of shares available in a stock through naked shorting, thereby depressing the price. His suspicion grew when he noticed that Knight often traded in securities that were red-flagged on the Depository Trust Company’s “chill list.” The DTC is an obscure financial industry-owned company that manages the custody of more than $1 quadrillion in securities annually, recording the transfers with journal entries and guaranteeing the trade. The company makes it easy for people to buy and sell securities without needing to exchange paper stock But when the DTC senses trouble, it will stop clearing trades on a stock temporarily. A chilled stock can still trade — as long as the market participants handle the physical certificates themselves. But it can be a sign that something is gravely wrong. The DTC states on its website that it chills stocks “when there are questions about an issuer’s compliance with applicable law.” That doesn’t stop Knight from buying and selling them, though. Its chief legal officer, Thomas Merritt, acknowledged at a 2011 Securities and Exchange Commission roundtable that the company actively traded chilled stocks, saying that as long as the security still trades, “we are going to be involved in that business.” And DiIorio found numerous examples of Knight trading chilled penny stocks. “I didn’t know they did that,” said Jim Angel, a Georgetown University business school professor. “I’m kind of shocked to think that Knight would be working with paper stock certificates.” He suggested that Knight might simply want to accommodate customers trying to get out of chilled stocks. “Or maybe they feel there’s enough interest in a security that they can trade profitably, even if they have to shuffle the certificates.” Because most other market makers flee chilled stocks, however, this means Knight can assume even more control over the stock price.
This is interesting Investors Exchange Fee Schedule Effective August 19, 2016 Membership Fees Membership Fee Investors Exchange FREE Connectivity Fees Service Fee 10G Physical Port FREE 1G Physical Port FREE Logical Port FREE Market Data FeesShow more Definitions "Internal Distribution Fee" is the fee charged to any entity that receives the Exchange Market Data product directly from the Exchange or indirectly through another entity and then distributes that data internally or to an affiliate. "External Distribution Fee" is the fee charged to any entity that receives the Exchange Market Data product directly from the Exchange or indirectly through another entity and then distributes the data externally to a third party. "Usage Fee" is the fee charged for a natural person, a proprietorship, corporation, partnership, or entity, or device (computer or other automated service) entitled for the receipt of Exchange data. Service Fee Internal Distribution Fee FREE External Distribution Fee FREE Usage Fee FREE Transaction FeesShow more All fees identify cost per share executed. Footnotes provide further explanatory text or, where annotated to fee description, indicate variable rate changes, provided the conditions in the footnote are met. To the extent a Member receives multiple Fee Codes on an execution, the lower fee shall apply. To the extent a Member qualifies for lower fees, pursuant to this Fee Schedule, the lower fees shall apply. Definitions "Fee Code" is identified on each execution report message from the Exchange in the Trade Liquidity Indicator (FIX tag 9730) field. "Fee" means fees for securities with an execution price at or above $1.00. "Fee < $1.00" means fees for securities with an execution price below $1.00. "TDVT" means the total dollar value of the transaction calculated as the execution price multiplied by the number of shares executed in the transaction. "TMVD" means total monthly volume displayable calculated as the sum of executions from the Member's displayable orders during the calendar month. "Cost" means any fees charged by/rebates received from away venues. Fee Code Description Fee Fee < $1.00 L Displayed Match Fee FREE Taking Displayed Liquidity Providing Displayed Liquidity I Non-Displayed Match Fee $0.0009 0.30% of TDVT Taking Non-Displayed Liquidity * Providing Non-Displayed Liquidity S Internalization Fee FREE Member executes against resting liquidity provided by such Member Alpha Routing and removing liquidity (all routing options) ** Cost + $0.0001 Registration and Processing Fees The following fees will be collected and retained by FINRA via the CRD registration system for the registration of associated persons of IEX Members that are not also FINRA Members: $100 for each initial Form U4 filed for the registration of a representative or principal; $110 for the additional processing of each initial or amended Form U4, Form U5 or Form BD that includes the initial reporting, amendment, or certification of one or more disclosure events or proceedings; $45 annual for each of the Member’s registered representatives and principals for system processing; $15 for processing and posting to the CRD system each set of fingerprint cards submitted electronically by the Member, plus a pass-through of any other charge imposed by the United States Department of Justice for processing each set of fingerprints; $30 for processing and posting to the CRD system each set of fingerprint cards submitted in non-electronic format by the Member, plus a pass-through of any other charge imposed by the United States Department of Justice for processing each set of fingerprints; and $30 for processing and posting to the CRD system each set of fingerprint results and identifying information that has been processed through a self-regulatory organization other than FINRA. * $0.0009 (0.30% of TDVT for < $1.00), otherwise FREE if Taking Non-Displayed Liquidity with a Displayable Order and at least 90% of TMVD was identified by IEX as Providing Displayed Liquidity (i.e., the Member’s execution reports reflect that the sum of executions with Fee Code L and a Last Liquidity Indicator (FIX tag 851) of '1' (Added Liquidity), divided by the sum of executions with Fee Code L, is at least 90% for the calendar month). ** The Exchange will pass-through in full any Costs to the Member and add the IEX fee ($0.0001). https://www.iextrading.com/trading/