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Consolidated tape and cost of surveillance systems

There is a set of vendor solutions available already to provide EBBO. Technology development and competition will enable buy-side to obtain a reasonable benchmark for the best-execution. On the other hand, regulators should carefully assess demands for changing market data prices, as revenues from market data services are accompanied by the costs of surveillance systems required to maintain orderly markets.

I think that regulatory actions in dark pools and high frequency trading areas show that they do not have sufficient understanding of the current market structure. Thus a fair and consistent solution can’t be enforced by regulators at the moment

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