You pays your money, you takes your choice
First Published Thursday, 31st May 2012 02:31 pm from Fidessa : Steve Grob
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Nice to see the row over Europe's consolidated tape has
href="http://www.ft.com/cms/s/0/23f26dec-a971-11e1-9972-00144feabdc0.html#axzz1wLV2214A"
target="_blank">BATS Chi-X as the market was at risk
of subsuming to apathy. The problem is that whilst everyone wants
href="http://fragmentation.fidessa.com/2011/09/14/market-data-and-the-prisoner%E2%80%99s-dilemma/"
target="_blank">they want it for different reasons.
The point that BATS Chi-X is making is that the fees being
charged by incumbent exchanges are simply too high. This is a
tricky one to call as it's not easy to identify the exact costs
involved in the production of market data, or how the incumbents
reinvest (as they claim) the profits they make selling it. What
is certain, however, is that whatever incumbents were charging
before (when they were the dominant trading venues), it should be
less today as they are no longer the only source of price
information you need. If you can only provide half the picture,
shouldn't that be reflected in the fees you charge? The move by
BATS Chi-X is clever for two reasons. First it brings this point
neatly into the spotlight, and second it is a great way for it to
introduce its own market data fees whilst still claiming the
moral high ground.
As BATS-Chi-X's
market share of European equities continues to grow, I am sure we
can expect it to flex its muscles further.
href="http://fragmentation.fidessa.com/wp-content/uploads/New-Image1.png">
class="aligncenter size-full wp-image-3799" title="BATS Chi-X
market share"
src="http://fragmentation.fidessa.com/wp-content/uploads/New-Image1.png"
alt="" width="574" height="324" />
Let's just hope that it doesn't go too far and the whole
cycle starts again with new Davids emerging to challenge the new
Goliaths - the only difference being that these incumbents will
be pan-European rather than national.
Anyway,
thought it might be time to get your latest views on
this:
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