The Real Route to Market Data Reform
The lawsuits filed by the incumbent exchanges to block market data reform, while not surprising, are disappointing.
If we want to maintain the strength and resiliency of our capital markets, we need to embrace change and partner with our regulators on constructive solutions, instead of throwing up legal roadblocks aimed at bolstering competitive moats and preserving a two-tier system of market data.
MEMX was created by a diverse group of market participants to address the need for an exchange willing to champion the best interests of the market, rather than its legacy business model.
The solutions proposed by the SEC may not be perfect, but they are steps in the right direction. Millions of individual investors and registered representatives rely on consolidated market data feeds when placing orders to buy or sell stock. MEMX supports efforts to expand the content and improve the latency of NMS market data products to better meet the diverse needs of the growing investor community. Many aspects of the governance and infrastructure plans have broad industry support and would result in much greater information for all investors, immediately.
We must openly address the conflicts of interest surrounding market data and develop solutions that level the information playing field.