The market data used by professional and nonprofessional investors – as well as by federal regulators – is a critical component to the transparency of U.S. equity markets, according to a new report by the Equity Markets Association (EMA), an industry association representing the interests of U.S. exchanges.
In a whitepaper issued for federal policymakers, the EMA report provides an overview of market data’s role in the U.S. capital markets, including identifying different types of market data, the role of consolidated Security Information Processor (SIP) market data, and the responsibility for and governance of SIPs.
The full report, “The Importance of Market Data to the U.S. Equity Markets,” can be accessed by clicking here.
EMA was established in 2015 to provide federal policymakers, regulators and investors with in-depth policy analysis on important issues that impact the U.S. equity markets. Founded by Intercontinental Exchange, Inc., which operates the New York Stock Exchange (NYSE) Group of exchanges, NASDAQ, EMA promotes federal policies that safeguard a transparent marketplace, incentivize capital formation and ensure a robust secondary market for securities trading.
Previous published EMA reports include “The Anatomy of a Trade,” designed to provide policymakers with visibility into how trades are executed, from retail investors trading through online services to market makers. Stacey Cunningham, chief operating officer of the NYSE Group, and Frank Hatheway, NASDAQ’s chief economist, led separate discussions earlier this year for the staffs of the House Financial Services Committee and the Senate Banking Committee on the mechanics of how trade orders are executed.