SIP Adds Historical Market Data Revenue
The Securities Information Processors’ Operating Committees are now providing the following market data information to the public on a quarterly basis:
- Trade and quote revenue distributed to Participants for Tapes A, B and C, dating back to 2007;
- Per trade and quote message revenue (in aggregate) distributed to Participants for Tapes A, B and C, dating back to 2007;
- Revenue earned by fee type for Tapes A and B, dating back to 2009, and Tape C, dating back to 2007.
The data show that over the last decade, SIP revenues have decreased despite an enormous increase in message volumes. During that time the SIPs made significant technology improvements to handle these new processing demands, to reduce latency and increase uptime to unprecedented levels.
Historical data is available now and moving forward this quarterly information will be published, with a 60- day lag, on the respective Plan websites: Consolidated Tape Association (“CTA”) data can be found here and Unlisted Trading Privileges (“UTP”) data can be found here.
“Today’s announcement furthers the SIPs’ commitment to transparency, which is undoubtedly a positive development for investors and market participants across the industry,” said Emily Kasparov, Chair of the SIP Operating Committees.
“Over the past several years, median latency has been reduced to under 20 microseconds for the UTP SIP and is expected to be below 50 microseconds for the CTA SIP following its technology upgrade later this year. All this occurred while message volumes since 2008 nearly doubled and overall revenues declined.”
Kasparov added, “The SIP Advisory Committees have primarily asked for two things: improved performance and increased transparency. We have made great strides on both fronts and look forward to continuing to work with the industry to ensure that our markets remain the strongest capital markets in the world.”
Publication of revenue data is the latest example of the SIP Operating Committees’ commitment to increasing transparency by providing detailed information into the respective operations of the CTA and UTP.
Last November, the Committees released detailed summaries of the Market Data Revenue Allocation Formulas for both Plans, which can be found here and here. In addition, the CTA and UTP websites include summaries of the General Sessions from the Operating Committees’ quarterly meetings, plan policies, quarterly and monthly performance metrics, pricing schedules, technical specifications, and more.
With regard to market data reform, the SEC may have bitten off more than it can chew.
Vela's SuperFeed market data service complements IPC's Connexus Cloud offering, execs say.
With all the moving parts in the exchange space, don't lose sight of the impact on end user investors.
Bill Bierds of BCC Group and Bill Fenick of Interxion discuss how COVID-19 has accelerated cloud adoption.
KBW says previously implemented exchange data fees should be safe.