NSE market data now comes at a fee | Bizness Watch

NSE market data now comes at a fee

The Nigerian stock exchange engaged today, with the media, analysts and research groups on  its product ‘The Market Data’ – a new service designed in the main, to re-establish its natural intendment for the use of data in the Nigerian Capital market and specifically on the terms of use and distribution of The NSE Market Data; as well as other recent developments at the bourse.

According to the NSE, “in order to further the objectives of providing a quality and timely market data dissemination service, the Exchange took direct control of its Market Data business in October 2012 and some of our market data vendors, which include reputable global market data distributors such as Reuters, Bloomberg, SIX Telekurs, DirectFN, Interactive Data and I-NET Bridge, have formally noted the improved service levels as a result of this move”.

In his remarks the CEO of the NSE, Oscar Onyema informed the gathering that the stock exchange had engaged the services of Jordan and Jordan, a globally renowned financial group to benchmark it, in all segments of its operations. He hinted that the Institution was now affiliated with the FISD, a global market data body, with a view to aligning itself with the  best practices for implementing the product.

Describing the ‘Market Data’ as an initiative that will facilitate increase access to the retail end of the market, Mr Onyema also affirmed  that 39 market data products are being rolled out. The NSE believes that doing this would provide for and enable it generate much needed revenues to support its ability to sustain its best practice ethos.

The NSE had stated as much on March 22, 2013 when it issued a release wherein it explained that “ It is normal practice for global Stock Exchanges to charge for this type of market data use to cover some of the huge cost incurred in generating, storing and disseminating the data, which incidentally is also a key element of their intellectual property rights. Indeed, market data sales account for a sizeable portion of the income of many global Exchanges. We have however offered a discounted fee for our broker/dealer firms and the domestic professional end of the market, to facilitate improved access and priced the service competitively in comparison to other Stock Exchanges. We have also taken steps to ensure that the retail end of the market can continue to access some of the key market data information at no cost via our web and electronic mail services using the above links.”

The NSE then noted that it “continues to make its Daily Official List available; however subscribers that want to redistribute it will have to be licensed by the Exchange”.

Making a presentation on the workings of the product, Ms. Yvonne Okoye, Market Data specialist for the exchange, stressed that by the concept and framework of the service – the print media will not pay for access to basic information like pricelist, but such entities are required to sign a contract/agreement on the use and distribution of NSE generated data.

She also disclosed that different levels of data  will be released to the vendors, professional and non-professional analysts, media, and researchers.

Clarifying questions on the market data and the fears of a lower participation from local analysts and vendors, Oscar Onyema assured the gathering that the market data product is very competitive and considerate in its price charges, compared to say, the Johannesburg and Nairobi exchanges.

The event had in attendance Ade Bajomo – ED, NSE Market Operations, NSE officials, capital  market correspondents, analysts, and representatives of research groups.

– Oscar Onyema (Proshare)

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