Exchanges Say Some Equities-Data Revenue Declined Over 10 Years

A committee of U.S. exchanges including NYSE Group Inc. and Nasdaq Inc. said the revenue earned from data feeds has decreased since 2007, even as traders and banks complain that they are paying too much for vital market information.

Data revenue from NYSE-listed stocks and other venues fell to below $175 million a year in 2017 from a 10-year peak of more than $200 million, according to a statement Thursday. For Nasdaq-listed stocks and others, revenue remained flat at around $120 million a year.

Download the Paper →

Measuring the Impact of Changing the Tick Size on the Liquidity and Trading of Smaller Public Companies

The Securities and Exchange Commission in 2015 issued an order approving a plan to implement a Tick Size Pilot by the exchanges and FINRA. The Order approved the Pilot for a two-year period beginning October 2016, and it introduced a new quoting and trading rules for smaller public companies that were included in one of three Test Groups created by the Pilot. The Equity Markets Association believes the Pilot is a first step toward assessing whether liquidity in smaller companies can be enhanced.

Download the Paper →

Importance of Market Data to Investors and Regulators

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.

Download the Paper →

Anatomy of a Trade

The Equity Markets Association hosted a briefing on Capitol Hill with an overview of U.S. equity markets, market participants, regulatory structure and how trade orders are executed.
The briefing for staff of the House Financial Services Committee and staff of lawmakers who serve on the committee was designed to provide 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 the discussion into the mechanics of how trade orders are executed.

Download the Paper →