How new European regulations will lead to both increased competition and increased data requirements in exchange traded derivatives.
Taking in OPRA can be hard work. I’m not
talking about the music (although that can be tough to get
through as well!), but the Options Price Reporting Authority
(OPRA) feed of US options data.
The OPRA feed consumes more bandwidth than any other market
data feed in the world and experiences peak traffic bursts
— currently more than 5m messages per second
— that dwarf comparable rates of throughput in
European options data feeds. That’s not just
because US options are traded more actively (which they are),
but also because OPRA consolidates data from nine competing
exchanges, whereas European exchange traded derivatives are
concentrated on their primary market platforms.
Should Europe experience more competition in on-exchange
derivatives trading —and I’ll explain why
that will be the case later on — we will see
requirements for a European consolidated options feed/s,
similar to OPRA but a little bit easier to process in terms of
message traffic. In other words, a European Operetta (a lighter
version of OPRA).
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