Last fall we released Filtered Options Feed to help customers manage the bandwidth necessary to take in the OPRA consolidated market data feed. Just about a year ago, I talked about that feed to a room full of customers at the NYSE Vendor Forum. At that time I used the graphic below to demonstrate how much options market data had grown over the last decade.
The graph indicates a sharp rise in market data rates, which equate to 68 percent annualized growth. Recent data from OPRA indicates that growth continues. In May, peak data rates measured at a 1-millisecond interval, averaged nearly 6 million messages per second. Daily message totals routinely top 5 billion or even 6 billion per day.
The addition of more trading venues, whether they offer much liquidity or not, will certainly add a new chapter to that data growth story. Market makers will need to quote on those new exchanges.
Whereas today firms quote on up to nine markets, soon they will have to meet obligations on up to 13. Even if a firm doesn’t quote on all of those trading venues, it will likely expand its coverage to one or more new destinations. And it is unlikely any will withdraw from existing venues as a response to the new fledgling exchanges. By definition, that implies further growth of data.