LONDON: The London International Financial Futures and Options Exchange (LIFFE) has notified members of a change in its data pricing structure to a flat fee per user, effective next April. This moves it away from charging higher first terminal fees plus reduced additional fees for each terminal at the same location, the preferred method of the majority of futures exchanges.
LIFFE says the previous system was overly complex and it adhered to a concept of location, something that is becoming increasingly irrelevant in light of, for example, Internet technology. It also hopes that this new structure will simplify market data managers' lives.
The new structure charges at £12.50 per month for LIFFEdata. LIFFEdata consists of financial futures and options, equity options, indices and commodity data. A second level fee will be effective from 1 July for the Order Book. This will again cost the user a single flat fee per month of £12.50. The information available in the order book will start to be disseminated as of April 12, however, initially only Gilt data will be made available with other data coming on board at regular intervals. As such, LIFFE, the only fully automated exchange to offer such data, will delay charging for the service until July 1.
LIFFE says it is not currently considering enterprise licences. The reasoning behind this is simple, it prefers to deal directly with its 80 quote vendors rather than its 97,000 users.
The six month notification also falls well within recommendations of the Financial Information Services Division (FISD) to align exchange fee schedules onto a quarterly schedule (IMD, Sept.7). It also gives double the recommended 120 days notice of fee changes to vendors. LIFFE is a member of the FISD and supports this latest best practice recommendation.
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