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The Guide to Market Data Basics for US Equities

What you need to know about accessing market data—its complexity and costs

Market data is one of the largest expenses for financial services firms. It also presents them with important decisions—namely, determining the data they need and who can provide it. Exegy’s Guide to Market Data Basics for US Equities explains the nuances of market data and how firms can access it. Armed with this knowledge, you can make more informed and strategic market data purchasing decisions.

SIP Feeds and the National Market System

The Security Information Processor (SIP) feeds are part of the Regulation National Market System (NMS). Reg NMS is an SEC effort to reduce market fragmentation caused by unreliable trade reporting across market venues. As part of the plan, exchanges must report transactions in real time to one of two SIPs—the Unlimited Trading Plan (UTP) and the Consolidated Tape Association (CTA).

The Guide to Market Data Basics for US Equities explains how the SIPs work and the ways in which their Level 1 data can provide value to firms whose strategies allow that depth of market.

What is Level 2 Market Data?

However, some firms require more granular market data. Level 2 data (also called depth of book) includes the scope of bid and ask prices for a given security. This type of data provides a clearer view of demand for a security, showing where points of support and resistance can be found.

Exegy’s Guide to Market Data Basics for US Equities describes the levels of data available, and how to access them.

The Market Data Ecosystem

Every firm’s needs are different, so one type of market data provider won’t work for everyone. It can be confusing sorting through the types of vendors available, their advantages and the types of costs involved. The Guide to Market Data Basics for US Equities is your resource for all the important market data decisions your firm faces. To get started, fill out the form below and download the guide.

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