Nasdaq: Under Virtu Market Data Axe

A quick math assignment:

@Nasdaq earned $540 million in information services (aka – #marketdata) revenue in 2016, up 5.5% over 2015 (and, not to put to fine a point on it, but this growth is slowing as 2015 v. 2014  was +8.2%).

@KCGHQ spent $148 million on communications and data processing in 2016.

@VirtuFinancial is on its way to acquiring KCG – and is on record with a strategy to ultimately consolidate both operations onto a single, unified trading platform. No doubt, this is not lip service.

What is the impact on Nasdaq – and other exchanges – whose revenue growth has become so dependent on market data sales?

If you are ambitious, here’s some additional intelligence that you could use in the analysis: (We have more in the can if you need it.)

BTW, you have to guess that all #HFT leaders have really spiffy axes, no?

By | 2017-04-28T11:24:28+00:00 April 28th, 2017|Alphacution Feed|

About the Author:

Paul Rowady is the Director of Research for Alphacution Research Conservatory, the first digitally-oriented research and strategic advisory business model focused on providing data, analytics and technical infrastructure intelligence within the financial services industry. He has 28 years of senior-level research, risk, technology, capital markets and proprietary trading experience. Contact: paul@alphacution.com; Follow: @alphacution.

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