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18th February 2021 | Press Releases

Derivatives market calls for change to market data fees

For more information visit: https://www.acuiti.io/customer-reviews/market-data-review/

London – 18 February 2021: Market data fees have increased by an average of between 50 and 100% over the past five years and almost half of sell-side organisations now spend more than $3m per year on market data, a wide-ranging study by Acuiti has found.

Acuiti’s research found that a typical mid-sized proprietary trading firm or hedge fund faces bills of between $25,000 and $50,000 a month, while the largest firms face faced outlays exceeding $250,000.

Over two-thirds of bank respondents reported their market data fees payable to exchanges to be in excess of $250,000 per month. Brokers and non-bank FCMs reported a broad spread of fees, with the smallest paying less than $10,000 and the largest spending more than $250,000 per month.

Acuiti surveyed senior executives at 112 firms from across the global derivatives markets and found that in addition to the rising costs, 82% of respondents said that their organisation found it hard to accurately forecast the costs of market data while 67% said that the costs of data had presented a major barrier to trading new markets or products.

The findings are contained in the Acuiti Market Data Review, which is released today. The review also collected extensive comments from market participants on how to address the rising costs of market data.

“The commercialisation of market data is an inevitable consequence of the demutualisation of exchanges. However, fee increases are reaching the point at which they are unsustainable and preventing growth in the market,” said Will Mitting, founder and managing director of Acuiti.

“This report seeks to forge a path to a sustainable future for market data and contains a series of suggestions of measures that can be taken to mitigate concerns and lower the burden for market participants.

“With regulators in several jurisdictions taking a keen look at market data fees, it is in the interests of both the exchanges and their clients that market-led solutions are achieved before potentially more extreme measures are forced upon the market.”

The report found a general acceptance that market data is a commercial commodity and very few respondents called for them to be completely eradicated. However, the complexity of fee schedules, regularity of exchange audits and difficulties firms face in monitoring and reporting market data usage are key areas that the market wants addressed.

In addition to the section on Market Data, the report also features a series of customer reviews of real-time market data feed providers including Refinitiv, ICE Data Services, CQG, Bloomberg and several other providers as well as an indepth profile of client demand and investment intentions when it comes to third-party data feeds.

For more information visit: https://www.acuiti.io/customer-reviews/market-data-review/


For more information, contact Will Mitting

Tel.: +44 (0) 203 998 9190

Email: willmitting@acuiti.io

About Acuiti

Acuiti is a management intelligence platform designed to provide Senior Industry Professionals in the Derivatives Industry with high-value insight into industry-wide performance and business operations. At Acuiti, we believe in quality, not quantity. We provide a platform through which our exclusive network of Senior Industry Executives can share and source information on day-to-day operational challenges, providing them and their management teams with increased transparency and in-depth analysis to make more informed decisions and benchmark company performance. Financial Institutions benefiting from our services include Banks, Non-bank FCMs, Brokers, Proprietary Trading Firms, Hedge Funds and Asset Managers.