THE WORLD FEDERATION OF EXCHANGES ISSUES STATEMENT CLARIFYING THE NATURE OF STOCK MARKET DATA
Hamilton, Bermuda: 7 January 2019 —In a press release today The World Federation of Exchanges (“WFE”), issued a statement clarifying the nature of stock market data. The release stated:
London, Monday 7 January 2019 – The World Federation of Exchanges ("WFE"), the global industry group for exchanges and CCPs, has today issued a statement on stock market data, as follows:
The WFE has noted that the topic of stock market data – information on the price at which shares are trading – periodically attracts commentary. The key facts do not change over time but are not always kept in mind in such commentary. This statement highlights the most significant of these:
· It is stock exchanges that create information (‘data products’) about the price at which shares are trading. This information would not exist but for the role played by exchanges.
· Exchanges create this information as an integral part of the process of bringing together buyers and sellers. (This is why it is termed a ‘joint product’.)
· Exchanges also perform a number of other crucial functions in support of this process, such as market surveillance and information technology, thereby ensuring the integrity of the information.
· The quality of the information that exchanges create means it has an economic value. The price at which information is licensed is accordingly a commercial matter for each individual consumer and exchange.
· Free information is typically available to consumers who are willing to wait a short time for it.
The WFE stands ready to assist any regulators who are concerned about the role and nature of market data.
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About the World Federation of Exchanges (WFE):
Established in 1961, the WFE is the global industry association for exchanges and clearing houses. Headquartered in London, it represents over 200 market infrastructure providers, including standalone CCPs that are not part of exchange groups. Of our members, 37% are in Asia-Pacific, 43% in EMEA and 20% in the Americas. WFE exchanges are home to nearly 45,000 listed companies, and the market capitalisation of these entities is over $82.5 trillion; around $81.8 trillion (EOB) in trading annually passes through the infrastructures WFE members safeguard (at end 2017).
The WFE is the definitive source for exchange-traded statistics, and publishes over 350 market data indicators. Its free statistics database stretches back more than 40 years, and provides information and insight into developments on global exchanges. The WFE works with standard-setters, policy makers, regulators and government organisations around the world to support and promote the development of fair, transparent, stable and efficient markets. The WFE shares regulatory authorities’ goals of ensuring the safety and soundness of the global financial system.
With extensive experience of developing and enforcing high standards of conduct, the WFE and its members support an orderly, secure, fair and transparent environment for investors; for companies that raise capital; and for all who deal with financial risk. We seek outcomes that maximise the common good, consumer confidence and economic growth. And we engage with policy makers and regulators in an open, collaborative way, reflecting the central, public role that exchanges and CCPs play in a globally integrated financial system.
Contact details:
Anna Watson
Head of Communications, The World Federation of Exchanges
Email: awatson@world-exchanges.org
Phone: +44 20 7151 4137
Twitter: @TheWFE