Overview
Real-time market data (RTMD) refers to order and trade information about equity securities distributed immediately after an order has been entered, amended or cancelled or a trade has been executed on a marketplace. Access to RTMD is important for the proper functioning of the capital markets because dealers and investors rely upon it to make informed investment decisions and dealers use it to help comply with their regulatory obligations when handling and routing orders.
Since marketplaces are the sole producers of RTMD in relation to equity securities traded on their facilities, there has long been concern over information fragmentation (a concern that has been addressed in part by regulating consolidated distribution of RTMD for professional use through a central party) and the costs of accessing RTMD in a market that does not foster competitive pricing.
The tension between the importance of RTMD and the…
