The collation and dissemination of pricing data in the equities and options markets should be opened up to competing providers says an SEC-convened advisory panel.
The 25-strong panel of academics, market participants and stock market officials recommends that each market centre should be permitted to sell its market information to any number of competing consolidators, which, in turn, would sell to vendors and subscribers.
US stock quotes are currently distributed by the Consolidated Tape Association, a government mandated body which critics say is anachronistic and monopolistic.
The SEC Committee believes that opening the market to competition would significantly reduce the fees paid to the CTA by individual and institutional investors.
The CTA argues that the risks associated with the introduction of new technology and business processes outweigh the economic benefits of increased competition.
The Securities and Exchange Commission has yet to comment on the Committee's findings.