Monday, November 3, 2008
Data News #2008 - 80
NASDAQ OMX Plans To Offer New NASDAQ Basic Entitlement
Please Route to:
- Direct NASDAQ OMX Data Feed Subscribers
- NASDAQ OMX Market Data Redistributors
What you need to know:
- NASDAQ OMX will soon introduce a new NASDAQ Basic entitlement for market participants and market data vendors looking to carry best bid and offer and last sale data from NASDAQ market systems.
- In support of the NASDAQ Basic entitlement, NASDAQ is now offering beta testing for a new NASDAQ Best Bid and Offer (QBBO) data feed. QBBO is a NASDAQ proprietary data feed designed to carry the best bid and offer quotation data from the NASDAQ execution system for U.S. exchange-listed equities.
- The NASDAQ Basic product launch is subject to filing with the U.S. Securities and Exchange Commission (SEC).
Who you should contact:
- NASDAQ OMX Global Data Products at +1 301 978 5307
What is NASDAQ Basic?
NASDAQ Basic is a proposed new data entitlement that will provide the following key data elements for all U.S. exchange-listed equities:
- Best bid and offer data from the NASDAQ Market Center®
- Tick-by-tick price and size information for trades executed in the NASDAQ Market Center or trades reported to the FINRA/NASDAQ Trade Reporting FacilityTM
- NASDAQ® Official Opening Price and NASDAQ Official Closing Price data
The NASDAQ Basic product launch is subject to SEC filing. For additional information on the NASDAQ Basic entitlement, please contact your NASDAQ OMX Global Data Products account manager.
What NASDAQ data feeds should I process to create a NASDAQ Basic entitlement?
To create a NASDAQ Basic entitlement display, firms would need to process the following two NASDAQ proprietary data feed products:
- NASDAQ Best Bid and Offer (QBBO) – This new NASDAQ proprietary data feed will provide the highest bid price and lowest offer price available in the NASDAQ Market Center system for all U.S. exchange-listed equities on a real-time basis. QBBO is intended to be used for the NASDAQ Basic entitlement only.
- NASDAQ Last Sale (NLS) – This existing NASDAQ proprietary data feed provides real-time trade data from the NASDAQ Market Center system as well as the FINRA/NASDAQ TRF for all U.S. exchange-listed equities. NLS is currently offered as a standalone entitlement. Once NASDAQ Basic is approved, firms may use this trade data feed to supply NASDAQ Basic displays, NLS displays or both.
What are the network protocol options for the QBBO and NLS data feeds?
QBBO and NLS are offered in the following protocol options:
- TCP/IP (using the SoupTCP network protocol standard)
- UDP/IP (using the MoldUDP network protocol standard)
NASDAQ is recommending that firms allocate 10 Mb in bandwidth for the QBBO data feed and 5 Mb for the NLS data feed. Please note that NASDAQ bandwidth recommendations are based on one-second peak data rates.
NASDAQ OMX also offers compressed versions of the QBBO and NLS data feeds for firms looking for the lowest possible network costs. For both feeds, the compressed version will be supported only for the TCP/IP protocol option.
When will QBBO and NLS be available for connectivity and testing?
QBBO will be available for connectivity beginning today, Monday, November 3, 2008. Until the NASDAQ Basic entitlement is officially launched, firms may use the QBBO data feed for beta testing purposes only.
NLS is already a production data feed. In June of 2008, NLS was approved as a standalone NASDAQ trade data entitlement. Firms that wish to process the NLS feed exclusively for NASDAQ Basic testing purposes should contact their NASDAQ OMX Global Data Products account manager to make the necessary administrative arrangements.
Firms may connect to the QBBO and NLS direct feeds at the NASDAQ – U.S. data centers via an authorized connectivity provider.
What do I need to do to order the NASDAQ Basic component data feeds?
NASDAQ OMX requires that all firms execute the NASDAQ OMX Global Data Agreement prior to the initiation of the first NASDAQ OMX service.
To add NASDAQ Basic, firms must complete the following NASDAQ OMX agreements:
All firms:
Direct connect subscribers to QBBO and NLS:
Who should I contact for additional information on NASDAQ Basic?
- NASDAQ OMX Global Data Products at +1 301 978 5307
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Nasdaq (Nasdaq: NDAQ) is a leading global provider of trading, clearing, exchange technology, listing, information and public company services. Through its diverse portfolio of solutions, Nasdaq enables customers to plan, optimize and execute their business vision with confidence, using proven technologies that provide transparency and insight for navigating today's global capital markets. As the creator of the world's first electronic stock market, its technology powers more than 90 marketplaces in 50 countries, and 1 in 10 of the world's securities transactions. Nasdaq is home to approximately 3,900 total listings with a market value of approximately $13 trillion. To learn more, visit: business.nasdaq.com.