As an independent agency broker-dealer, and provider of tools to assist other broker-dealers in routing, execution, pre- and post-trade compliance and risk monitoring, we have a significant interest in ensuring that the fees exchanges charge for access and connectivity services are fair and equitable, and allow for the most orderly, efficient and competitive markets possible.
In our recent comment letter to the SEC regarding NYSE access and connectivity fees, we suggest that the impact of costs on smaller and mid-size brokers outside of the so-called “bulge bracket,” can be disproportionate and can have a wide ranging impact on not only these brokers, but also the investors we serve.
We believe that there has not been enough focus on the unique issues that surround market data fees raise for this critical segment of the market.
In our comment letter we explore the following topics:
- There are no viable alternative to paying the exchange’s market data fees
- Market data fees can be an undue cost burden
- Market data fees should be examined in relation to other market structure issues
It is our opinion that this trend toward higher market data fees could inevitably harm our securities markets.
Click here to review the full comment letter.