{"id":24222,"date":"2020-12-15T16:12:53","date_gmt":"2020-12-15T16:12:53","guid":{"rendered":"https:\/\/www.exchange-data.com\/?p=24222"},"modified":"2025-09-13T08:19:46","modified_gmt":"2025-09-13T07:19:46","slug":"edi-the-rising-cost-of-market-data","status":"publish","type":"post","link":"https:\/\/www.exchange-data.com\/es\/edi-the-rising-cost-of-market-data\/","title":{"rendered":"EDI Insights: The Rising Cost of Market Data"},"content":{"rendered":"

\"stock<\/a><\/center>
\nThe cost of market data, a by-product produced through the compilation and aggregation of pre-and post-trade data by Exchanges, are indisputably rising year-on-year. To understand and raise awareness of these increases, this post will investigate how and why market data costs are rising, the regulatory stance and the consequences of high market data costs.<\/span><\/p>\n

Why is market data costs rising?<\/small><\/small><\/h2>\n

Stock exchanges have evolved tremendously over the last few decades, especially during the 1990s when digital and virtual advancements meant data could be exchanged instantly between different organizations. It was these advancements that granted stock exchanges the monopolistic ability (IOSCO 2020:9)<\/a> to monetize and control access to market data as an additional source of revenue.<\/span><\/p>\n

\"Octavio<\/a>The revenue generated by market data, managed by Information Services, has grown massively over the last 15 years. According to a recent report<\/a>, Information Services generated just over US$1 billion in 2005 and by 2019 the figure had skyrocketed to just over US$6 billion. An annual growth rate of roughly 12.6%, which contrasts the diminishing revenue of data consumers over the past decade.<\/span><\/p>\n

Given the rising revenue levels and minimal cost to produce market data at Exchanges, the report estimates an impressive operating margin of 76% and eye-watering profit margins that more than double major data vendors or treble that of major investment banks.<\/span><\/p>\n

\"Exchange<\/a><\/center><\/p>\n

How are market data costs rising?<\/small><\/small><\/h2>\n

The cost of market data is predominantly decided by Exchanges through various access fees. Any changes to the fees require 3-months written notice in advance from the supplier and usually involves either an additional type of fee or an increment to existing fees.<\/span><\/p>\n

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A notice served by the CME Group, on 30th September<\/a>, is a prime example that demonstrates how the cost of market data is increasing. Aside from \u2018adjusting<\/em>\u2019 4 existing fees, the notice arbitrarily introduces 2 additional fees \u2013 one of which relates to distributing historical data, a service that has always remained free among major exchanges, including the ICE USA, Eurex, Euronext, and Nasdaq OMX Nordic exchanges:<\/span><\/p>\n\n\n\n\n
Adjusted fees:<\/th>\nAdditional fees:<\/th>\n<\/tr>\n
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    \n
  • Non-Display Real-Time License Fees<\/li>\n
  • Delayed Website Fees<\/li>\n
  • Device – Real-Time Fees<\/li>\n
  • Non-Display Real-Time License Fees<\/li>\n<\/ul>\n<\/td>\n
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