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A Big Trader Just Joined Criticism of Key Stock Market Service

  • KCG says U.S. stock market's benchmark data feed is sluggish
  • Wall Street regulator recently drew attention to data speeds

To one of the U.S. stock market’s biggest traders, the decades-old central system that broadcasts prices to investors is sluggish and should be replaced.

That conclusion, from a KCG Holdings Inc. report released Monday, echoes calls from other traders to overhaul the way information is collected and distributed in the market. The object of KCG’s scorn is the consolidated data feed known as the SIP, which collects and redistributes prices from 12 stock exchanges and dozens of alternative venues. The most sophisticated traders shun it, instead basing trading decisions on faster sources bought directly from exchanges.