The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2020 Euromoney, a part of the Euromoney Institutional Investor PLC.
Foreign Exchange

FX: Stemming the tide of rising data costs

Innovation and price transparency around market data remain a bone of contention among FX market participants, although data providers insist they are working to reduce costs.

arrows-up-600

FastMatch revealed in 2016 it was working with other platforms and market makers to create a consolidated tape for FX to provide a last-sale data feed with price, size and timestamps.

However, despite its worthy ambition to provide more data at lower cost, the voluntary participation aspect of the foreign-exchange consolidated tape (FXCT) project was an obvious limitation.

FXCT was inspired in part by the Consolidated Tape Association, which oversees the dissemination of real-time trade and quote information on a number of exchanges. Yet the efficacy of this initiative was thrown into question by a recent report by the Healthy Markets Association, which indicated that non-competitive forces for equity market data have created substantial upward pressures on prices.

The report notes that a market participant who wanted the fastest connections with the most relevant trading information for Bats, New York Stock Exchange and Nasdaq has seen its costs rise from $72,150 per month on June 1, 2012, to $182,775 on June 1, 2017.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree