Impact of Regulation on Market Data (Market Focus)

Introduction

Market data has always been a fundamental element within capital and financial markets. However, upcoming regulations such as MiIFID and Reg NMS will place immense pressures for accuracy and transparency which has raised the significance of market data and therefore brought this issue back on the strategic agenda.

Scope

• Market data is the lifeblood of the financial services industry
• Market data is the 'fuel' for algorithmic trading models
• Reg NMS and MiFID will 'fuel' growth in market data volumes
• Retail investors look set to win and exchanges to lose

Highlights

While algorithmic models surely will not run out of market data, given the staggering growth in market data traffic and quote messages in recent years, the 'fuel lines' of algorithmic trading could most certainly become "clogged" according to an industry respondent.

The explosion of market data in equities and options has been fuelled by the growth of black box and electronic trading strategies and this is now spreading to options, futures and foreign exchange (FX), hence exchanges have been gearing up to find a solution.

Reasons to Purchase

• Vendors can view the market data landscape from a top-level perspective
• Vendors can understand and appreciate what key issues, trends and dynamics this industry is faced with at present