Are you prepared for exchange operator changes?

Implementing exchange policy and price changes should be the catalyst for a clear out of non-profitable applications and products.

Michelle Ansell, Managing Director, Commercial Management, CJC

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We all know that managing market data compliance in our regulation dominated landscape is a full time exercise. The reality is that just one aspect of this compliance – addressing challenges relating to exchange policy and price changes – is more than enough to keep teams fully occupied. Their frequency is relentless and they appear to show no sign of abating. According to Andy Nybo at Burton Taylor International Consulting; “Exchanges have devoted significant resources to enhance their market data and index offerings in recent years, with exchanges generating $5.4 billion in revenue through market data and index sales to customers.”

Deutsche Boerse recently announced pretty significant policy and price changes that will come into effect on 1st January 2018. They’re not the only exchange to do so, but all require complex, time consuming and expensive scrutiny simply to understand their scope and impact.

Implementing these changes is highly likely to result in increased costs, unless they’re used as a catalyst for a clear out of non-profitable applications and products.

My view is that all firms consuming non-display exchange data need to conduct a deep dive analysis in order to develop crystal clarity around application usage and thereby be ready to apply required changes in the most optimal manner. 

Take a fresh look at how CJC can help you get prepared here.