Exchange Data International (EDI), the financial back-office data provider, plans to break NYSE Corporate Actions‘ monopoly by launching a complete replacement service. The new service will halve the costs charged by NYSE.
EDI’s Like-For-Like service is a serious challenger to NYSE’s market within this particular segment, as CEO Jonathan Bloch explained:
Clients finally have a truly complete and competitive alternative for corporate action data. The provision of reference data has been viewed by many clients as a license for exchanges and legacy providers to print money. Many exchanges have been charging top-dollar for data for years, but the recent changes to reporting rules and new redistribution fees announced in June this year have taken many data redistributors to breaking point.
Bloch on EDI’s price competitiveness:
Beyond its extremely high fees, NYSE imposed a requirement on its redistributors to provide names of downstream consumers of its data in order to charge an additional levy, should they redistribute the data, making the data more costly. We don’t.
Bloch on EDI’s positioning as a disruptive data vendor:
It’s about time the corporate actions sector had a competitive environment: we now provide redistribution users with the same quality data sets, for half the cost, without any onerous redistribution rules.
EDI started doing business in 1994 as a data vendor. The NYSE on the other hand was born as an exchange. It later morphed into a data business. Besides major markets, EDI also covers emerging and frontier markets. These include Africa, Asia, the Far East, Latin America and the Middle East.
EDI’s 400 staff use smart systems and machine-learning to quality-check and distribute corporate actions globally. According to Bloch, this enables them to source, check and supply data sets without the massive overheads. Thus allowing them to pass on the efficiency and cost savings to users.
Bloch added: “A stock exchange exists primarily to raise capital for companies and liquidity for their shares. As we see it, the corporate actions sector has long needed more competition amongst providers, and our aim is to radically change the status quo, by providing a real alternative and improving the cost-benefit for clients.”