As market regulators, institutional investors, broker-dealers and exchange operators continue to discuss how to improve the US cash equities market’s transparency, BATS Global Markets found that few are willing to pay for it.
The global exchange operator filed a fee-change request with the US Securities and Exchange Commission (SEC) to retire its EDGE Routed Liquidity Report data feed, which it acquired with its purchase of Direct Edge earlier this year.
The data feed provided various data points for orders that Direct Edge needed to route away from its exchange to venues with the national best bid and offer (NBBO). Delivered on the morning after such a trade, the data feed provided the trade’s symbol, quantity, limit price, trade side (bid or offer) and time of routing as well as the NBBO at the time of its routing.
The decision to retire the US$500/month basic and US$1,500/month enhanced offering was a simple one for BATS since no firm decided to subscribe to the feed since its introduction in October 2012.
“This is part of prioritising our products and services as part of the continuing integration of Direct Edge into BATS Global Markets,” said an exchange spokesperson.
BATS continues evaluating its duplicative exchange offerings and selecting which to keep, added the spokesperson. “However, BATS does not have a similar product offering like the Edge Liquidity Report.”
Other Direct Edge offerings that BATS has stated would be retired include Direct Edge’s NBBO Offset Peg Order and Route Peg Order types. BATS also stated that it plans to modify Direct Edge’s Supplemental Peg Order, Market Order Collar.