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That's how they made their money for most of their existence, and how crypto exchanges still do, but not anymore. The NYSE actually makes most of its money now
by fallingknife 4y ago
That's how they made their money for most of their existence, and how crypto exchanges still do, but not anymore. The NYSE actually makes most of its money now by charging for colocated server space which HFT's use to get super low latency connections to the market.
- notamy 4y agoWait, really? That sounds weirdly counterintuitive. Do you know if there's any public information about this? The only thing I could find from a quick search was [0] which doesn't provide a huge amount of info... [0] https://www.reddit.com/r/algotrading/comments/2c1r4e/how_much_does_it_cost_to_rent_stock_exchange/ https://www.reddit.com/r/algotrading/comments/2c1r4e/how_muc...
- humanistbot 4y agoTake a read through the 10-K for the NYSE's parent company, Intercontinental Exchange, Inc.: https://www.sec.gov/Archives/edgar/data/1571949/000157194922000006/ice-20211231.htm https://www.sec.gov/Archives/edgar/data/1571949/000157194922... OP is wrong though. Their entire data and hosting revenue is $838m, but more traditional listing and transaction fees make up the rest of their $3.8b revenue. So basically 20% data and hosting, 80% classic exchange profit: https://www.sec.gov/Archives/edgar/data/1571949/000157194922000006/ice-20211231_g12.jpg https://www.sec.gov/Archives/edgar/data/1571949/000157194922...
- fallingknife 4y agoI read this about the NYSE in particular years ago. I make no claims about overall ICE revenue.
- hinkley 4y agoAnd you've just described the 'regulatory capture' of HFTs. Wow.