We have written extensively and critically about how stock exchanges have taken their customers’ data and used it to sell “edge” to the highest bidders. In fact one of the chapters (It’s the Data, Stupid) in our book Broken Markets was devoted to the topic. At a time subsequent to the stock exchanges becoming “for-profit” and going public, the exchanges stopped seeing themselves as efficient destinations for the fair secondary trading of corporate ownership – which aids in capital formation – and started seeing themselves as arms dealers. They make more money selling edge and catering to fast traders (more…)

  Nasdaq just  filed with the SEC to withdraw the provision/selling of its Market Analytics Data Package that includes the Market Velocity and Market Forces data products. These products, which have been around for 12 years, take all customer data – buys/sells/cancels – and package them into sentiment products that can be used to short term trade. NASDAQ has been selling these products since 2006. While recently there has been less demand for these products,  as the super savvy and fast HFTs have their own models that they continually are tweaking that accomplish the same things, their existence emphasizes the NASDAQ mindset and (more…)