Pan-European multilateral trading facility (MTF) Turquoise is implementing a fee structure for its market data from November, which will charge market participants separate fees for level 1 and level 2 data.
Turquoise users choosing to receive data in conjunction with data from the platform’s majority-owner the London Stock Exchange (LSE) will pay £6 per user per month for level 2 data and £3 per user per month for level 1 data – a fee that Turquoise says makes it the lowest-cost provider of pan-European data. Users will still be able to access 15-minute delayed data free of charge.
The move follows the introduction of charging for market data on rival MTF BATS Chi-X Europe, which was announced in May. Previously, users had not been charged for market data. However, the MTF set its fees to undercut Europe’s primary exchanges, raising the competitive pressure on one of the exchanges’ core business areas. Instead of a flat fee, BATS Chi-X Europe opted to introduce a charge according to data usage and choice of services, which will take effect in October.
Market data revenues at Europe’s primary exchanges including the LSE, Deutsche Börse and Nasdaq OMX grew by approximately one-third between 2008 and 2011, according to official exchange figures.