NYSE's new data feed competes with consolidated tape

NEW YORK, April 18 Thu Apr 18, 2013 3:35pm EDT

NEW YORK, April 18 (Reuters) - NYSE Euronext has rolled out a new data feed for wealth managers that might reduce revenue that goes to the overseer of the consolidated tape, the cornerstone of the U.S. stock market for quotes and share prices.

The company on Wednesday launched NYSE Best Quote and Trades, a data feed offering the best bid and offer, the latest sale price and other market information culled from its three U.S. trading platforms, including the New York Stock Exchange.

NYSE BQT is designed for wealth managers and financial advisors who want to stay abreast of the market at a lower cost than the consolidated tape. The tape is used by traders to show they have executed orders at the best available price.

NYSE acknowledged the new feed will compete with the Consolidated Tape Association, a grouping of all U.S. stock exchanges whose creation almost 40 years ago was hailed as a major achievement in providing price transparency across all markets.

The new data feed was created to meet customer demand and a client already was testing the product, said NYSE spokeswoman Paola Hernandez.

"This is tailored to the non-trading staff because they're just using it for informational purposes," Hernandez said. "Yes, it competes with the CTA. Is it an replacement? No. It's an alternative."

The new feed could potentially undercut revenue for NYSE, too, as it receives a portion of CTA revenue.

According to NYSE's annual report, there were 337,988 subscribers in 2012 for CTA's Tape A, a feed that represents NYSE-listed securities. NYSE received 41.1 percent of Tape A revenue last year, a percentage that has been in decline.

The CTA, which is administered by a NYSE unit, does not publish revenue figures.

NYSE said that firms with 5,000 to 9,999 users can save up to $500,000 a month by using NYSE BQT.

In a hypothetical example, NYSE said on its website that it would charge $18 per user for a brokerage with 10,000 users, or $180,000 a month. The CTA would charge $640,000 for the same number of users, NYSE added.

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