Platform Competition and the Regulation of Stock Exchange Fees


The authors discuss how platform competition economics has become an important part of the SEC’s framework for evaluating stock exchange fees.

Evaluating the reasonableness of stock exchanges’ fees has been an area for the practical application of platform economics for many years. However, despite years of regulatory review and related litigation, a benchmark for analysis of platform competition that the SEC and the courts would find sufficient has not been set.

In this article, authors Marc Rysman of Boston University and Rainer Schwabe of Cornerstone Research discuss:

  • The business models of stock exchanges and the role of trading, data, and co-location services.
  • The linkages between trading, data, and co-location services that make stock exchanges platforms for these services.
  • The history and current status of the use of platform economics to evaluate the reasonableness of stock exchange fees.

This article was originally published by Concurrences in November 2021.

The views expressed herein do not necessarily represent the views of Cornerstone Research.

Platform Competition and the Regulation of Stock Exchange Fees


Marc Rysman

Professor of Economics,
Boston University

  • Boston

Rainer Schwabe