Exchanges exercise exclusive control over the data investors generate on exchange platforms.
The United States has a two-tier system of market data comprised of:
- A public feed—the Securities Information Processor (SIP)—that distributes best bids and offers
- Faster proprietary data products that include best bids and offers plus information about other buy and sell orders
Both tiers are exclusively controlled by the exchanges. With this lack of competition, the fees for market data have risen unchecked for years.
Costs Of Premium Data Feeds Have Skyrocketed in Recent Years
Monthly Cost For Premium Data Feeds, 2012-2017
Source: R2G analysis, as cited in The Wall Street Journal