IB ARCA fee in effect or not??
- Thread starter rcj
- Start date
ARCA was purchased by the NYSE. The NYSE now controls the ARCA market data and has added it to their control schema wherein non-pro users can access the data without specific prior approval from the NYSE and pro users must get prior approval. This is the same way NYSE market data works. If you have an NYSE prior approval for NYSE listed securities, this also works for ARCA. In other words, the admin/agreements are shared.
NYSE is charging for ARCA market data:
* Listed stocks: $5 (nonPro), $15 (Pro)
* NASDAQ stocks: $5 (nonPro), $15 (Pro)
IB has bundled the data as follows:
* ARCA all stocks, nonPro: $10
* ARCA all stocks, Pro: $30
Our data and routing algorithms don't distinguish between 'parent exchanges' so we would have had to do substantial extra work to separate the ARCA data into 2 sub-channels (listed, unlisted).
Clients get 2 types of consolidated market data, one including ARCA, the other without. The version every client gets will depend on whether they are subscribed to ARCA. Clients who want ARCA, and are willing to pay the ARCA charges, can go into account management and subscribe.
ARCA/NYSE first tried to implement these charges back in September. The SEC prevented them from actually enforcing the charges until some time last month. It is our understanding that the restriction was lifted and that ARCA is now charging for market data and we are passing on these charges without markup. We have provided email notifications on this topic both in September and again last month.
Please note that clients who submit orders using SMART routing, still get ARCA in the routing consideration, they still benefit from true best execution. ARCA market data rules require we charge for disseminating data, not for using it in routing decisions. We are not happy about the direction that ARCA has taken, so IB will try to route preferentially to other ECNs who have maintained an open data model. But in those cases where ARCA is the only exchange/ECN on a price, we do route to them.
For the record, IB is strongly against the direction the NYSE/ARCA has taken to increase their revenue stream. It puts an economic burden on clients who want to have a consolidated view of the trading on a given stock and is, in our opinion, inconsistent with the goals of greater transparency and best execution principles for the US stock market. Several large data distributors including Google and Yahoo have filed against the exchange's data practices. If private investors -- regardless of whether they are IB clients or not -- want to express their own dissatisfaction with these practices, they should write to the SEC.
on arca website there still a note that says fees are suspended since nov 1. and this 'till further notification.
http://www.archipelago.com/marketdata/book_info.asp
http://www.archipelago.com/marketdata/book_info.asp
Look at the proper page on the ARCA website:
http://www.nysedata.com/nysedata/InformationProducts/ArcaBook/tabid/293/Default.aspx
click on the 'Pricing' tab. This is the data product in use by IB and most, probably all, data redistributors.
The other link refers to some other ARCA product called Arca Web Book. I think this is some standalone interface only to ARCA and NYSE. If you look at http://www.nysedata.com/nysedata/InformationProducts/ArcaBook/ArcaWebBook/tabid/281/Default.aspx you will see ARCA is also charging $10/month for this product.
Please feel free to contact ARCA directly and verify.
Maybe someone out there can explain if the SEC review (see link: http://sec.gov/rules/other/2006/34-55011.pdf ) means that the fees for Arca book may NOT go through as they requested in (see link: http://www.sec.gov/rules/sro/nysearca.shtml ) file # 2006-21.
Will comments from the public actually be considered, or is the fee implementation inevitable?
Will comments from the public actually be considered, or is the fee implementation inevitable?
IBj is trying to say that there are two different products involved in this discussion.
The free product is ARCA's web-disseminated quote.
The product for which a fee is charged is the ARCA quote which brokers are permitted to re-broadcast to clients. I assume they aren't permitted to re-broadcast the free web product, or it would not be as timely as the free product, or both.
The free product is ARCA's web-disseminated quote.
The product for which a fee is charged is the ARCA quote which brokers are permitted to re-broadcast to clients. I assume they aren't permitted to re-broadcast the free web product, or it would not be as timely as the free product, or both.