Financial Markets as Information Monopolies?

Posted: 26 Jan 2001

See all articles by Sharon Brown-Hruska

Sharon Brown-Hruska

Commodity Futures Trading Commission (CFTC)

Jerry Ellig

George Washington University - Regulatory Studies Center

Abstract

Instead of allowing financial markets to own the price and quotation data they produce, the SEC forces the markets to contribute the data to a central pool, in return for sharing in the revenues from the sale of the data. Even within this system of attenuated property rights, the SEC could foster competition by identifying and removing barriers that prevent data networks from competing with each other. It would be even better to restore proprietary ownership of price and quotation data to the markets that produce it. That would allow exchanges and other trading systems to protect the investments they made to develop and improve their trading and information systems. Proprietary ownership would foster multiple and diverse streams of data instead of the single source now in place, which gives rise to the market power the SEC seeks to control.

Suggested Citation

Brown-Hruska, Sharon and Ellig, Jerry, Financial Markets as Information Monopolies?. Available at SSRN: https://ssrn.com/abstract=244816

Sharon Brown-Hruska (Contact Author)

Commodity Futures Trading Commission (CFTC)

1155 21st Street NW
Washington, DC 20581
United States

Jerry Ellig

George Washington University - Regulatory Studies Center ( email )

805 21st St. NW
Washington, DC 20052
United States
703-375-9410 (Phone)

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Abstract Views
633
PlumX Metrics