The Price of Exchange Data

Vincent Maurin and Thierry Foucault
Additional contact information
Vincent Maurin: HEC Paris - Ecole des Hautes Etudes Commerciales
Thierry Foucault: HEC Paris - Ecole des Hautes Etudes Commerciales

Working Papers from HAL

Abstract: Exchanges increasingly generate revenues from selling transaction data, in addition to their traditional business of matching traders. Given exchanges' market power over their data, this raises questions about the quality and pricing of these data, and exchanges' contribution to market transparency. We study the optimal design of an exchange that sells both access to its trading platform and transaction data generated by traders' activity. We show that the introduction of a market for transaction data reduces trading fees and increases volume and welfare. Caps on data fees can increase data quality but lower welfare.

Keywords: Exchange Design; Sale of Market Data; Market Transparency (search for similar items in EconPapers)
Date: 2026-07-01
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:wpaper:hal-05688265

DOI: 10.2139/ssrn.7072038

Access Statistics for this paper

More papers in Working Papers from HAL
Bibliographic data for series maintained by CCSD ().