5. ABOUT FEES
Market data is not free!!!
Domain is complex
Change on a regular basis
Subject to SEC regulation
Only 3 exchanges target non-market participants:
• NYSE
• NASDAQ
• BATS
Other exchanges deliver feed and data but mostly
targeted to firms trading on the exchange
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7. FEES DEPEND ON:
Source (NYSE/NASDAQ/BATS)
Breadth (Single Exchange/CTA)
Delay (Delayed/Real-Time)
Depth (Last Sale/BBO/Level 2/Depth of Book)
Connection (Direct/Indirect)
Distribution (Datafeed/Hosting)
Type of User (Pro/Non-Pro)
Location of User (Internal/External)
Type of Use (Display/Non-Display)
Type of Display (Terminal/Web/TV/IVR/Billboard)
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8. THE FLOW OF DATA
Feed Feed/API Feed/API App
USER
EXCHANGE
USER
VENDOR
EXCHANGE USER
EXCHANGE SUB
VENDOR DISTRIBUTOR
VENDOR
USER
EXCHANGE
VENDOR USER
EXCHANGE
USER
Collects Consolidates Packages/Presents
Owns Consolidates Distributes Distributes Consumes
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9. THE FLOW OF MONEY
License Right
To Use
License Right License Right License Right USER
EXCHANGE To Distribute To Distribute To Distribute
USER
VENDOR
EXCHANGE USER
SUB Pays For
EXCHANGE VENDOR DISTRIBUTOR Access
VENDOR
USER
EXCHANGE Pays For
Pays For Access
VENDOR USER
Access
EXCHANGE
USER
Types of Money Flows
Pays For
Access
• Distribution Fees
• Usage Fees
• Access Fees
Italics are Optional
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10. DISTRIBUTOR FEES
Fixed monthly fees also payable monthly
You pay them if you receive a datafeed
• From the exchange or a vendor/Sub vendor
• Continuous feeds are considered datafeed and so is XML
• Unless XML data delivered by exchange (NYSE Web Services)
The only scenarios where you don’t pay them are:
• You receive data through a terminal or a “controlled” application
• You receive data through a “widget” hosted by someone else
Direct Access Fees are also charged by exchanges
• Whether you get a direct feed from the exchange or take the data
from a sub-vendor, you will pay for access.
Always excludes indices
• Exchanges tend to license different data sets separately
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14. USER FEES
Considerations
• Per Query pricing sometimes available
• Enterprise Licenses sometimes available
• Regional Exchanges pricing also available (BX, PSX)
• Non-Pro fees can be capped (easier for web/mobile apps)
Special pricing for:
• Non-Display (Algo trading)
• Voice Response
• Television Display
• Billboards Display
• Unique Web Site Display (NASDAQ Last Sale)
For More Information
• www.nasdaqtrader.com/Trader.aspx?id=DPSpecs
• www.nyxdata.com/Data-Products/Real-Time-Data
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16. AGREEMENTS
You will need an agreement if:
• You receive a datafeed or
• You receive real-time data (even as an individual)
• Exceptions:
– You are an individual not receiving CTA data
– You are a firm receiving NYSE Delayed Data
– Your are a firm or individual not receiving BATS data directly
Agreements are worked directly with exchanges:
• Your data vendor can initiate the process for you and provide
contact information
Agreements will define reporting requirements
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17. REPORTING
Exchanges require detail reporting for:
• Real-time External Professional Subscribers
• Real-time & delayed Datafeed Recipients (if you are a distributor)
Exchanges do not require reporting for:
• Delayed Internal and External Subscribers
• Real-time Non-Professional Subscribers
BATS require no reporting
Reporting is done monthly using each exchange
reporting system
Exchanges bill you based on what you report
• Exchanges can back-bill you for misreported data
• Exchange can audit you
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18. USAGE
Usage is highly restricted
• Public web site display
– OK for delayed
– Restricted for real-time (see next page)
• User licensing generally means you cannot display data publicly
– Implicit due to fees and agreements required
– Access must be password protected
– Exceptions: NASDAQ Last Sale Unique Website Visitor Option
• Usage also restricted by type of fee selected
– Non-Display
– Television
– IVR
– Billboard
– Web Site
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19. USAGE
Delayed OK OK n/a
Real-Time
Depth of Book NO NO OK
Level 2 NO n/a n/a
CTA/UTP NO NO n/a
BBO OK OK OK
Last Sale OK OK OK
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22. DELIVERY TECHNOLOGY
DATAFEED WIDGET API
Mobile Windows Mobile Windows
Web App Web App Widget Web App
App App App App
HTML Frame
or Javascript Insert XML
JSON
CSV
Data
App Server
(caching,
serving)
“PULL” Firm “PULL” Firm
Feed Parser
(custom code)
Each widget
is a web page
Proprietary
Feed Format
Widget Widget Widget API API API
Router
Web Servers Cloud Web Services
Internet or
Leased Line “PUSH” Firm
CONTINUOUS BINARY FEED Provider Provider Provider
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23. COMPARISON
PROS CONS
FEED • Every trade/quote provided • Heavy infrastructure (hardware, software, lines)
• True real-time (sometimes) • Long implementation times (2-4 months average)
• Low-latency (sometimes) • Extensive development skills required (complex
feed logic, trade conditions, legacy technology)
• Extensive industry skills required (complex feed
logic, trade conditions processing, etc.)
• Complex to maintain (feed changes)
• Expensive to license (license, connections fees)
• Too much data (if you have no need for everything)
WIDGET • Easy to implement (web site change) • Web site only (no mobile, no non-web applications)
• Reasonably affordable • Branded (can take traffic away from your web site,
• Can dodge certain distributor fees don’t control display, not differentiated, etc.).
• Limited “cookie cutter” functionality
• Limited ability to customize look and feel
API • Easy to implement (use of standards) • Requires development to “present” the data
• No infrastructure (all internet) according to your needs.
• Quick time to market (minutes/hours) • Distributor fees required
• Affordable (pay as you go)
• Any app(web, mobile, internal)
• Customizable to your brand/needs
• Comprehensive (all price types)
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24. THE 3 COST/COMPLEXITY FACTORS
THESE ARE
YOUR COSTS.
DO NOT
CHARGED BY
UNDERESTIMATE
EXCHANGE
THEM!
CHARGED BY VENDOR
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27. XIGNITE SERVICES
Delayed XigniteGlobalQuotes
www.xignite.com/xglobalquotes.asmx
Real-Time
NYSE OpenBook Web
Service n/a
Depth of Book n/a
Upcoming
Powered by Xignite
Level 2 n/a n/a n/a
CTA/UTP XigniteGlobalRealTime
www.xignite.com/xglobalrealtime.asmx
BBO n/a n/a
NYSE RRP Web Service XigniteBATSRealTime
XigniteNASDAQLastSale www.nyxdata.com/Market-Data- www.xignite.com/xquotes.asmx
Last Sale Web-Services/NYSE-Real-Time-
www.xignite.com/xquotes.asmx
Reference-Prices
Powered by Xignite
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28. DEMONSTRATION
Reviewing the API catalog
Looking up an API
Pulling real-time quotes in Excel
Real-time Chart in Excel
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