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 techno-operational dynamics, and the business impacts of those decisions, in and for the global financial services (FSI) ecosystem. He is a 30-year veteran of the proprietary, quantitative / automated and derivatives trading arenas with specific expertise in strategy research / implementation, risk management, and technology development. Contact: feedback@alphacution.com; Follow: @alphacution.