Stock Exchanges Don't Grasp The Value Of Free Real-Time Quotes
from the missing-the-point dept
Although the financial industry has been resistant to change, there's no question that the internet has greatly expanded retail participation in the stock market. Cheap commissions and the proliferation of free data have lead to a major boost in trading activity. Meanwhile, just the data itself, served up on sites like Yahoo Finance, brings in money for the exchanges. Now a group of companies that have financial sites, including Yahoo and Google are complaining to the SEC about the fees that the major exchanges are charging. Already, some sites have stopped delivering real-time data, which carries a higher premium. Obviously, the exchanges can charge whatever they want, and there isn't a whole lot that the financial sites can do. It's unlikely that the SEC will step in, as it's probably not much of a priority. But it doesn't make much business sense for the exchanges to charge so much for the data that sites are dropping coverage. There's a lot more money to be made on the trading side, which is propelled by all the free data. Once again, companies have problems realizing that some of their products have more promotional value than direct sales value.