No additional fees for you!
Akin the infamous Soup Nazi and his resounding No soup for you statement from the television show Seinfeld, the U.S. Securities and Exchange Commissions recent statement rejecting U.S. exchange operators request to charge more for certain data feeds was similar.
According to Doug Clark, Head of Market Structure for the Americas at ITG, wrote in a note that the SECs unusual step this week of rejecting a request by U.S. exchanges to raise the cap on market data fees they charge to brokers stood out. He noted the exchange-run committee which oversees the main market data feed, the Securities Industry Processor (SIP) had argued that broker consolidation results in firm-wide market data fee caps that are too small relative to the size of some firms.
The move is seen by many brokers and electronic market makers as an indication that the SEC is focused on reining in the data fees that exchanges collect from their customers, Clark wrote.