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New SEC Rule May Turn Shops into Data Collectors

December 22, 2020



New regulation may expand who can aggregate and sell national market data. Potentially making it easier for other entities, such as asset management firms, to create their own data sets, compliance consultants say. The Securities and Exchange Commission recently approved amendments that would expand the information about quotations, transactions, and national market system stocks that exchanges must collect, consolidate, and disseminate.

The new rule could allow large asset managers to buy raw NMS data directly from exchanges, rather than going through securities information processors, like the exchanges, as they’re currently required to do, Hoopes says — “depending, of course, on the costs of building the system internally,” she adds

Foreside’s Jennifer Hoopes, Senior Managing Director and General Counsel, spoke with Ignites’ reporter David Isenberg to discuss the new changes and shared that some asset managers may aggregate their own in-house data.  Read the full article here to see what other key players in the industry are saying.