Over the last couple of decades technology has influenced data policies. The internet introduced a distribution network and an e-commerce capability for broker dealers and market data vendors; delayed data and redistribution policies were tweaked and expanded. Electronic / algorithmic trading brought us the advent of Non-Display Usage policies. The policies gradually became more complex and prescriptive: to account for unforeseen usage at the outset, and to protect against “bad actors” who identified policy loopholes. Over the last few years we’ve seen a number of information providers “unwind” restrictions and simplify data policy language; why?
- Did the information collection and administration associated with more restrictive policies work – effectively?
- Was the barrier to entry for complex policies too high; did it constrain / delay subscriberships?
- Was it financially “worth it”? Did the restrictive tariffs cover the additional administration costs?
- How do more complex policies affect the information provider / subscriber relationship?