The Tel-Aviv Stock Exchange (TASE: TASE) has released for public discussion a proposal for a considerable reduction of the cost of real-time data to private investors.
Around 2 years back, TASE made a notable move by improving the accessibility of trading data and supporting the display of real-time streaming data to private investors at a cost that’s significantly lower than that paid by business clients.
Many investors in Israel‘s capital market are accessing streaming market data (Level 1), which is on par with global standards, for just NIS 4 per month.
TASE is committed to maintaining its ties with the public and improving the public’s involvement and overall participation in the success of the Israeli economy, particularly in view of the general public’s rising interest in investments on TASE. TASE is now proposing another reduction of the prices for data vendors and TASE members seeking to offer real-time streaming data, for efficient access to market data by private investors.
Even after previous price reductions, the majority of private investors receive static data displays. To make dynamic, real-time updated data accessible to private clients, TASE proposes to further lower the cost of real-time streaming data to private investors.
The proposed adjustment will allow TASE members to provide an advanced display of the trading data through cellular applications and related developments, at lower prices, to small and new clients, making it easier for existing and new brokerage companies to provide an attractive offering for trading on TASE.
As part of the change, the cost of distribution of streaming data to private customers via TASE members and data vendors will be lowered to around 50%, depending on the total number of data recipients. The price of a Level 2 data package will also be lowered from NIS 35 to NIS 15-18 and the cost of Level 1 data package could drop to NIS 1 per customer per month.
For small clients with an investment portfolio value of less than NIS 25,000, the price of a Level 1 data package will be NIS 1 every month – which is 75% less than the current price.
Another suggested step involves the distribution of market data via financial websites. Currently, websites provide trading data to the public at a 15-minute delay. As noted in the proposal, websites that are only engaged in the display of data may offer real-time security prices to users for a monthly cost of NIS 1 per user.
A draft for public comments concerning the reduction of costs for private clients has now been shared on TASE’s MAYA website. The public is being asked to offer their comments until September 13, 2021.
After this date, the comments will be reviewed and recommendations will be taken into consideration. The proposal will then be presented to the Board of Directors of TASE for approval.
At present, TASE is focused on improving the accessibility and transparency of the trading data. Within this type of framework and pursuant to the Israel Securities Authority’s approval, during Q4 2021, TASE intends to introduce a new data service – Market by Order data offering.
This data feed will reportedly include the full order book. Currently, only the five highest price levels are being distributed to the market (per security). When the service goes live, market participants may view all price brackets in the market, along with the composition within the levels.
This data service is accessible via most international exchanges and its launch is reportedly a part of TASE’s strategy of alignment with worldwide standards.