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 | 2018-02-28T16:32:34+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 platform uniquely focused on modeling and benchmarking the impacts of technology on global financial markets and the businesses of trading, asset management and banking. He is a 30-year veteran of the proprietary, quantitative and derivatives trading arenas with specific expertise in strategy research, risk management, and techno-operational development. Contact: feedback@alphacution.com; Follow: @alphacution.