Information for a fee
A source at the investment company said that the Moscow exchange is considering the introduction of special charges for market participants for the use of data on ongoing auctions. This information was confirmed a top-the Manager close to the Moscow stock exchange and a market participant who knows about it from employees of the exchange.
“Will have to pay for both private and institutional investors. For private investors the exchange plans to introduce a fee of 300 rubles per month, for institutional — 26 thousand rubles”, said a source in the investment company, adding that to introduce paid subscription to market data the exchange plans in early 2017.
The press service of the Moscow exchange said that the exchange really is considering the introduction of payment of market data, however, this innovation will concern only investors almost never make transactions on the market. “If the customer uses our information in real time, but does not commit transactions, it will have to pay for a subscription of 300 roubles a month” — said the press service. It noted that all other citizens can get the same data but with a delay of 15 minutes. “For active customers making at least one deal a month, nothing will change,” added the press service. Information on the introduction of fees for institutional investors, the exchange has not commented.
A top-the Manager close to the exchange, says that the discussion of the introduction of fees for the use of the exchange of information goes a long time. “The exchange is keen to diversify the revenue structure, the majority of which now falls on the Commission in turnover and income from investment of own funds and clients’ funds,” he explained. Customer funds formed at the expense of margin, which is formed by market participants: they contribute funds to the account of the exchange, to get access to trading. These funds, as previously told the Moscow exchange CFO Evgeny Fetisov, the exchange invests in Bank deposits and OFZ. For 2015, the investment portfolio of the exchange increased by 64% to 1.15 trillion rubles, mainly due to currency revaluation and growth of balances on customer accounts.
According to the statements of the Moscow exchange IFRS in the first quarter of 2016 trading platform earned 6.9 billion rubles of net profit. Due to significant growth in trading volumes on cash, currency and derivatives markets its fee and Commission income rose by 32.2% compared to the same period in 2015 and amounted to RUB 5 billion due to the sale of market data and information services the market has earned all 202,6 mln.
The fee for the use of the exchange of information is a significant share in the income structure of the world stock markets, much more significant than the income derived from trading stocks and bonds. According to a joint study LSE and Deutsche Boerse, the provision of information services after the merger of the two exchanges could become the second after clearing most important source of income, occupying not less than 28% of the total revenues.
The surprise for investors
General Director of “Broker Opening” Yury Mintsev draws attention to the fact that the fee for using the trading data on the Moscow stock exchange is higher than in other stock markets. “For example, one of the largest us stock exchanges — BATS — charge for access to trade data is $0.5 per month,” he says, adding that it is unlikely that the payment will appeal to new investors on the Russian stock exchange.
A top-the Manager close to the Moscow stock exchange, says the idea to introduce fees for information services supported by the Central Bank. “The Bank of Russia, which owns 11,76% shares in the exchange interested in trading platform learn to earn not only on growth of client balances, especially in conditions of instability of world stock markets,” he says.
The press service of the Bank said that while the Bank of Russia, the initiative has not been received.
According to June 2016, the total number of citizens-bidders registered on the stock exchange exceeded 1.4 million of which are actively traded only 80 thousand investors. Thus, the introduction of payment information service at the first stage can bring the trading floor about 400 million rubles. monthly. In the case of the introduction of payment for institutional investors, which in June amounted to about 45 thousand (including foreigners), the exchange will add another 1.1 billion rubles income per month.
Mintsev doubt that the introduction of fees for information services will allow the exchange to earn some significant funds. “Among inactive clients a very high proportion of those who simply do not have access to the data online, so they will not be charged for the subscription and close your account,” he said. In the end, even those who have access to online data, but few trades, disconnect the terminals and it is unlikely to increase the probability of resuming trade in the future.
Managing BKS Andrey Aletdinov believes that the introduction of fees for information services will become an unpleasant surprise for private investors. “We are not used to paying for information even if we are talking about a small amount,” he says. In addition, according to Aletdinova, many investors, including institutional ones, do not so many bargains on the market. “Professional participants of the market is small, but a lot of those who spend 2-3 trades per month, for example, to change the currency. It is unlikely they will be important the use of information services,” he said.