The cost of access to real time pre & post trade order book data in Europe
This report has been deliberately written as a primarily observational piece of work, as opposed to a commentary with a strong point of view. The emphasis is very heavily on facts and figures wherever they could be found. What these facts and figures mean is obviously very important – this report is designed to prompt further discussion, argument and clarification. The facts and figures we have outlined represent a snapshot in time and given the recent crisis we have all lived through in the last two plus years (i.e. the Credit Crunch Crisis) and the changing regulatory environment prompted by MiFID and RegNMS back in 2007 it would be interesting to see how that has affected market data pricing and market data in general. On the subject of pricing trends, currency fluctuation between key currencies such as The Euro, The US Dollar and the British Pound have also had significant mathematical impact in recent years. The ever changing nature of how markets do business, with the significant increase of more black box activities, might suggest some kind of statistical correlation analysis – a bit like ‘Freakonomics’ – to ascertain what is the cause and what is the effect? Market Data is often quoted as being a typical Bank’s second largest expenditure item after Headcount/Payroll – this prompts ever greater need to study and understand the whys and wherefores of market data in all its manifestations – pricing being only one dimension, but an often overlooked and misunderstood one.
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