Internet Firms Seek SEC Review Of Stock Exchanges' Data Fees [Wall Street Journal]
Summary: Major internet players Google and Yahoo, among others, are asking the SEC to review fees that U.S. stock exchanges charge for market data -- presently a major source of income for exchanges. NetCoalition.com, a Washington trade group, is petitioning the SEC to stall recent fee increases at the NYSE. "The exchanges are increasingly seeking to restructure fee arrangements with the most popular Web sites and Internet companies in order to maximize the exchanges' profits at the expense of average consumers and investors," wrote Markham Erickson, NetCoalition.com's executive director. Some exchanges have begun charging fees based on "eyeballs" -- the number of viewers on internet stock pages. Yahoo, AOL, Forbes.com and others have stopped displaying real-time exchange quotes because of fee increases, which can run up to $1 per user. Market-data fees account for 10% to 20% of the NYSE's revenue, for example, and much more at regional exchanges such as the Philadelphia Stock Exchange. Spokesmen for the NYSE and Nasdaq declined to comment.
Related links: U.S. Exchanges Continue To Trim Expenses Through Consolidation, M&A Activity
Potentially impacted stocks and ETFs: Yahoo! Inc. (YHOO), Google Inc. (GOOG), IAC/InterActiveCorp (IACI), CNet Networks Inc. (CNET), Chicago Mercantile Exchange Holdings (CME), CBOT Holdings Inc. (BOT), NYSE Group Inc. (NYX), Nasdaq Stock Market Inc. (NDAQ), IntercontinentalExchange Inc. (ICE) • ETFs: First Trust IPOX-100 Index (FPX), iShares Dow Jones US Broker-Dealers Index Fund ETF (IAI) and streetTRACKS KBW Capital Markets (KCE)
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