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EXPERTS IN
GLOBAL FINANCIAL
MARKET STRUCTURE

EXPERTS IN
GLOBAL FINANCIAL
MARKET STRUCTURE

EXPERTS IN
GLOBAL FINANCIAL
MARKET STRUCTURE

EXPERTS IN
GLOBAL FINANCIAL
MARKET STRUCTURE

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Market Structure Partners is a specialist, independent, strategic advisory firm.
We provide advice about how evolving technology, changes in regulation and emerging trends impact underlying capital markets infrastructure all over the world.

Exchanges are leveraging an “incumbent advantage” to enforce “inexplicable price rises” in market data pricing, a new report by Market Structure Partners (MSP) has stated.

Released on Tuesday, the research entitled ‘There is no Market in Market Data’ revealed that incumbent venues are supplementing dwindling equity market revenues and volumes with hikes in market data pricing, ultimately leading to what the paper calls “stifling of growth and innovation”.

A new study finds that some of Europe’s largest exchanges have been using their incumbent advantage as must-have sources of data to increase their revenues by structuring datasets originally sold together into increasingly complex bundles at increased costs.

Market Structure Partners, a market intelligence and advisory firm, published a report analyzing market data prices and fee structures from 2017 to 2024, and found that fee schedules have increased exponentially across Deutsche Börse…

“Euronext just started its journey later”, says Niki Beattie, chief executive of Market Structure Partners. “All exchanges want to diversify from equities; it’s a low-margin business.”

The push to expand into other asset classes has more than offset the impact of Europe’s lacklustre equity market. In Q1, Euronext reported revenue up 8% due to growth in clearing, fixed income and power trading despite a 2% decline in equities income.

“It’s a little bit of embellishing because the buyside doesn’t care too much about latency,” said Niki Beattie, chief executive of Market Structure Partners. “There are not that many people who are milliseconds-sensitive, but there’ll be some who say: ‘Yeah, that’s attractive.’”

The main purpose of dark pools is to hide large block trades that otherwise would move a stock’s price if they were completed on lit markets.

LSEG’s shift to data and analytics has been a cash cow as clients have demanded ever-more granular information. Data sales make up about half its revenue, while fixed income and derivatives make up an eighth, post-trade and clearing another eight.

But Market Structure Partners chief executive Niki Beattie said the “average man in the street” and even some policymakers still think of it as the London Stock Exchange.

“They probably don’t understand what clearing is or what Tradeweb does,” she added.

Join us on The Startup Sensations Podcast as we dive deep into the world of Digital Assets, Cryptocurrencies, Tokenisation, and the Distributed Ledger with the exceptional Niki Beattie, a leading expert in financial market infrastructure and Chair of ClearToken.

But Niki Beattie, chief executive of Market Structure Partners said the status quo already favours major investors, and a single data source could help level the playing field.

“Without consolidated data, retail and institutional investors are the victims of arbitrage as they do not have a complete set of data from which to drive their decisions,” she told FN. “The handful of market participants who can currently afford to piece together all the market data can profit from this by spotting anomalies.”

…ClearToken intends “to be at the forefront of the UK’s drive to become a global centre for financial technology innovation.”

Niki Beattie, Chair of ClearToken commented:

“Digital asset technology has the potential to revolutionize financial markets offering enormous innovation in efficiency and transparency but we have also seen that it is a leap of faith to expect Defi to solve all market problems. Clearing houses will remain an essential market participant; their integration into the digital asset market structure can bring much needed stability and allow the innovative nature of this sector to continue within the regulated framework required to fulfill its transformative ambitions.”…

…“Digital asset technology has the potential to revolutionize financial markets offering enormous innovation in efficiency and transparency but we have also seen that it is a leap of faith to expect Defi to solve all market problems,” said Niki Beattie, Chair of ClearToken. “Clearing houses will remain an essential market participant; their integration into the digital asset market structure can bring much needed stability and allow the innovative nature of this sector to continue within the regulated framework required to fulfill its transformative ambitions.”…

Laser Digital, the digital assets subsidiary of Nomura, has made a strategic investment in ClearToken, a startup aiming to provide the scale and structure required for mass institutional engagement with digital assets.

…“Digital asset technology has the potential to revolutionise financial markets offering enormous innovation in efficiency and transparency but we have also seen that it is a leap of faith to expect Defi to solve all market problems,” said Niki Beattie, chair of ClearToken.