The World Federation of Exchanges (“WFE”), the global industry group for exchanges and central counterparties (“CCPs”), has today released an animation designed to educate stakeholders on the importance of valuing stock market data correctly for users who profit from it. The animation forms part of the WFE’s work to ensure that role of exchanges in creating market data is well understood.
The WFE first set out its formal perspective on the topic in January 2019, discussing some of the reasons why data has economic value to some market participants, and followed this with a July 2019 position paper. The latter set out the key questions and considerations, within the framework of the current, misinformed, policy debate for a coherent approach to pricing.
Nandini Sukumar, Chief Executive Officer, WFE said: “Stock market data exists only because exchanges create it, and the care that exchanges take in creating it means the data is both valuable and trusted. At the same time, large firms profit immensely from this data. Today’s animation provides stakeholders with an easy, visual summary of the industry’s position on the value of market data, but in doing so, reaffirms the very serious role that exchanges play each and every day in ensuring the vibrancy and fairness of capital markets.”