Jonathan Forman Comments on Proposed Rules Regarding Data Exchanges

News / July 22, 2020

Partner Jonathan Forman is quoted in an article published by on July 22, 2020. The article, “Low-Cost Data Providers ‘Piggyback’ Off Exchange Fee Probe,” discusses an investigation into exchange data fees being conducted by the Securities and Exchange Commission (SEC) and the Justice Department’s antitrust division. In February, the SEC proposed a rule that aims to broaden where data is consolidated and disseminated. The 595-page rule would expand the types of data that third-party vendors could gather and distribute, as well.

Forman told the publication that the proposed rule, in conjunction with DOJ memorandum, “puts a lot of pressure on exchanges to carefully review how they price their proprietary data.” Data should become more competitively priced as regulators look more closely at whether those costs are reasonable, he said.

Read the article (registration required).