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Transitory real‐time property rights and exchange intellectual property
Author(s) -
Webb Robert I.
Publication year - 2003
Publication title -
journal of futures markets
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.88
H-Index - 55
eISSN - 1096-9934
pISSN - 0270-7314
DOI - 10.1002/fut.10097
Subject(s) - futures contract , property rights , property (philosophy) , economics , law and economics , commodity , real property , business , financial economics , intellectual property , commerce , monetary economics , microeconomics , market economy , law , political science , philosophy , epistemology
American exchanges own the price quotations they generate. Access to real‐time price information ishighly valued by most market participants. This enables exchanges to exact royalties from the sale of suchmarket information. In this sense, an exchange's ownership of its price quotations is akin to owning aproperty right in a perishable commodity (i.e., fresh market price quotations) thatis most valuable for only a transitory or limited period of time. The implications of exchangeownership of price data extend beyond financial markets. Recently, Woodard (2000) has noted that someinternet auction operators have asserted ownership over the prices they generate. This study reviews the legalorigin and nature of the property right to price quotations generated on U.S. futures exchanges and assesseswhether exchange ownership should be transitory. The legal basis for transitory real‐time (real andpersonal) property rights is discussed and the economic implications are considered. © 2003 WileyPeriodicals, Inc. Jrl Fut Mark 23:891–913, 2003