High cost of European exchange data sparks investor revolt
As European equity trading venues have proliferated, so the cost of market data has risen; but investors are fighting back with a cost-sharing venture.
In December, the Plato Partnership – a not-for-profit-organization whose members include large asset managers such as Axa Investment Managers, Blackrock, DWS, Fidelity, Norges Bank, Union Investment and many others, as well as leading investment banks – announced a new venture with BMLL Technologies, a data engineering and data analytics company.
Platometrics will provide a complete picture of European equity trading data for the many venues to which European equity investors and their brokers route orders – including analysis of liquidity available on various venues, the best European bid offer price down to the millisecond throughout the trading day, and other quality-of-market metrics such as order-fill rates, percentage of time with best price, intra-day price volatility and market impact of executing.
It will offer all this on the day after trade date. This will have obvious application for benchmarking transaction costs and demonstrating best execution.
Mike Bellaro, chief executive of Plato Partnership, who previously ran equity trading for Deutsche Asset Management, tells Euromoney: “We operate in an extremely complex equity trading ecosystem, with 13 primary exchanges in Europe, eight regulated multilateral trading facilities (MTFs) and 40 registered systematic internalizers.