Proprietary traders are now at a "pain point" due to the rising cost of futures exchanges' market data
Higher market data fees are forcing prop
traders to re-assess the exchanges they use and could lead to
traders cutting off some markets before the end of the year,
experts have warned.
"It is rather naïve of exchanges to
think that such fees will just be accepted by clients; a storm
is brewing as market data fees have become a pain point across
market sectors," Mark Phelps, global head of sales and
marketing at GH Financials, told FOW.
"We are yet to see the true fall-out of
the escalating cost pressure but looking to the latter half of
the year, this will begin to change... Market data has become
an increasingly time-consuming and cost-absorbing task. The
squeeze is only getting tighter as exchanges continue to add
programmes or raise the charges for existing ones," he
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