Following the launch of the consolidated tape in September, Dmitri Galinov, CEO of FastMatch, is envisaging a new business model whereby the platform will not charge firms at all for brokerage.
Looking ahead in 2018 Galinov explains that the focus for FastMatch is going to be on expanding its market data business, which he predicts could grow large enough that it will be unnecessary to charge market participants a brokerage fee for trading on the FastMatch platform.
The analogous business model to this, according to Galinov, is Facebook.
“They have state of the art technology and they give it to you for free, but in turn they sell the data and that’s where they make their money, that’s where they generate their revenue,” he says.
Galinov claims that in the financial services industry many exchanges are already gravitating towards this business model, with the percentage of revenue made from market data compared to trading continues to grow.
“So when we have the tape and a lot of people are buying it, why don’t we just make everything free?”
You can watch the full interview, in which Galinov talks about the consolidated tape and the acquisition of FastMatch by Euronext, here: