Market Data Fees Called Into Question At SEC Roundtable

SEC Commissioner Elad L. Roisman and SEC Division of Trading and Markets Director Brett Redfearn raised various questions and concerns relating to current market data products, market access services and related fees.

At the SEC Staff Roundtable on Market Data and Market Access, Mr. Redfearn described the means by which market data is distributed and the costs associated with obtaining such data. He explained that the SEC divides market data into two types: (i) "core" market data consolidated through a central information processor called the "SIP," and (ii) proprietary data that is sold by the individual exchanges, the price of which is generally set by the exchanges. Mr. Redfearn described the proprietary data as "faster, more content-rich and more costly" than core data. He expressed concern that market participants might not find core data sufficient and, thus, would be required to purchase proprietary data over which individual exchanges might have monopoly