Exchange Data International (EDI) has launched an alternative service to NYSE Corporate Actions at less than 50 per cent of the redistribution costs charged by NYSE.
“Clients finally have a truly complete and competitive alternative for corporate action data,” says Jonathan Bloch (pictured), founder and CEO of EDI, the challenger supplier of global security corporate actions and reference data. “The provision of reference data has been viewed by many clients as a license for exchanges and legacy providers to print money,” says Bloch. “Many exchanges have been charging top-dollar for data for years, but the recent changes to reporting rules and new redistribution fees announced in June this year have taken many data redistributors to breaking point.”
EDI’s ‘like-for-like’ NYSE service offers a far more compelling approach to redistribution fees. “Beyond its extremely high fees, NYSE imposed a requirement on its redistributors to provide names of downstream consumers of its data in order to charge an additional levy, should they redistribute the data, making the data more costly. We don’t,” Bloch says.
According to Bloch, there’s a reason EDI has begun to be perceived as a disruptive data vendor. “It’s about time the corporate actions sector had a competitive environment: we now provide redistribution users with the same quality data sets, for half the cost, without any onerous redistribution rules.”
Established in 1994, EDI is a data vendor, not an exchange that morphed into a data business. Covering the major markets with an emphasis on emerging and frontier markets – including Africa, Asia, the Far East, Latin America and the Middle East – EDI’s 400 staff research, use smart systems and machine-learning to quality-check and distribute corporate actions and reference date globally. “We’re able to source, check and supply data sets without the massive overheads or burden of legacy technology, passing on the efficiency and cost savings to users,” says Bloch.
He adds: “A stock exchange exists primarily to raise capital for companies and liquidity for their shares. As we see it, the corporate actions sector has long needed more competition amongst providers, and our aim is to radically change the status quo, by providing a real alternative and improving the cost-benefit for clients.”