On Friday, June 6 the CME Group notified us about a new "netting" policy with regard to market data fees which will apply to IBs. The NIBA has been communicating its member concerns vigorously since last November when the CME announced its decision to discontinue the long-standing waiver of these fees. This new policy may bring relief for some NIBA members.
It should be noted that the "netting" policy is only applicable to data that is routed from an FCM. It does not apply to any agreements or contracts, IBs may have with individual ISVs. Many GIBs have data provider arrangements with ISVs through their FCM, so this can be good news for those GIBs. However, IIBs often access platforms through an FCM as a backup, and negotiate both their data and execution platform needs directly with the vendors, not through the FCM.
According to the CME Group, one of the main reasons this "netting" policy was developed, is because they have the ability to track data at the FCM level. But, tracking data after it leaves an ISV is very different and much more complicated. To track data at the ISV level, the exchange would need more cooperation from those third party vendors.
NIBA would like member feed back on whether the new policy as announced by the CME Group will benefit your business. Please send your comments to either:
Steve Petillo, NIBA President: petillo@coquest.com or
Mike Burke, NIBA Vice-President: mikeb@highgroundtrading.com
Let us hear from you -- we will continue to voice your concerns and work for better solutions and communications regarding this very important issue.
Download full PDF: 662014MarketDatamemo.pdf