London Stock Exchange Group, which owns the London Stock Exchange (LSE) and Borsa Italiana, has launched a new post-trade market data service, aimed at buy-side and retail users. From 1 October, professional terminal subscribers will be able to obtain separated real-time LSE post-trade content for Â£15 per month, with Borsa Italiana available at €4.
Post-trade data has been a focus among buy-side firms since fragmentation of European blue-chip liquidity across multiple venues under MiFID made it harder to obtain an accurate view of prevailing market prices.
The Federation of European Stock Exchanges (FESE), an exchange industry representative body, recently announced a commitment from its members to provide separate access to pre- and post-trade data at a “reasonable cost” by the end of the year.
The LSE is not a member of FESE, but Jarod Hillman, head of real-time data at London Stock Exchange Group, welcomed the move. “We weren't part of the discussions that led to FESE's statement … but there is an alignment. We agree with the [provision of free data after] 15 minutes and on standardisation of trade type flags across all venues and may be working to a slightly quicker timeline,” he said.
The new LSE offering is a subset of post-trade data that combines order book trade prints and reported ”off-book' content. The full set of post-trade data was previously available at Â£37 to non-members. The exchange hopes that the new post-trade data service will foster innovation by commercial aggregators who are already responding to market requirements for consolidated view products.
“This enables a discreet real-time service of post-trade content to be made available for our market in vendor services,” said Hillman. “There have been statements in various quarters that this is needed to provide better quality transaction cost analysis services. It is up to the industry as to whether that is run in real-time or not, but this initiative should flush out whether there is a need.”
The LSE is also to introduce a new volume discount pricing scheme for licenced distributors of its ”Level 1' content to retail investors, whereby content may be available for as little as 20p per month.