The U.S. Securities and Exchange Commission has proposed a plan that could benefit the majority of investors and traders, both by saving them money and making high-quality information available sooner.
According to a new report from the Wall Street Journal, the SEC is taking steps to reduce the tight grip of the big American exchanges over the information flow of real-time stock prices to the public. The current system consisted of a two-tier hierarchy in which trading platforms such as the New York Stock Exchange and Nasdaq Inc. charge their biggest customers a larger amount for faster information feeds. Smaller investors have to wait for the slower public stream. These feeds are known as securities information processors, or SIPs.
The current system proses a few problems that the SEC hopes to solve. Firstly, that the big exchanges have less incentive to invest in the public feeds, as they bring less profit. Secondly, that these same exchanges have too much power to increase fees on the premium feeds.
Pressure on the big exchanges, opportunity for investors
The U.S. regulatory body advanced a proposal on Wednesday that would see brokers and trading firms have much more say in how the public feeds are run. Assuming that these entities act in their best interests, this is likely to lead to a reduction in the fees they pay for the feeds. The individual investors should also benefit from these savings down the line, not to mention an overall improvement in the information quality of the public feed.
Of course, if the SEC proposal is approved, then the exchange groups such as NYSE parent Intercontinental Exchange Inc. (ICE for short) and Nasdaq (NDAQ) are the ones who stand to lose.
Information is key to market success
The SEC understands too well how important staying up to date with the latest market trends is to investors and traders on every level. At Libertex we believe this wholeheartedly. Our personnel have over 20 years of financial market and online-trading experience and know that in the fast-paced world of finance, information is what separates the best from the rest.
That’s why our fast, user-friendly trading platform also provides live updates on market trends and trading signals based on the latest feeds, so that our clients are always best placed to make the right call.
Available on the web or as a smartphone app, Libertex enables you to trade on the financial market 24/7 Available on the web or your smartphone we offer over 200 financial assets including stocks, shares, currencies, cryptocurrencies, indices, oil and gas, metals and more.
Want the best way to keep up to date and take advantage of market trends? Then register with Libertex and start trading now!