Other FAQs

In our Other FAQ section, we address a range of questions not covered in our main FAQ categories. This section serves as a source of additional information, helping both new and seasoned investors deepen their understanding of the BBAE platform.

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What kind of market data does BBAE provide?

BBAE offers Level 1 market data to its clients. This market data includes information from 16 Participants and the Financial Industry Regulatory Authority Trade Reporting Facility (FINRA TRF). Level 1 market data consists of real-time quotes, bid and ask prices, trade volume, and other essential information that can assist BBAE clients in making informed investment decisions.

Who provides the market data for BBAE?

Market data for BBAE is provided by Dxfeed. Dxfeed is a leading provider of real-time and historical market data solutions. They offer a wide range of market data services, including quotes, trades, order books, and other financial information. Dxfeed’s data feeds are known for their reliability, low latency, and comprehensive coverage of various asset classes and exchanges. By partnering with Dxfeed, BBAE ensures that its clients have access to accurate and timely market data to make informed trading decisions.

What is Level 1 market data?

Level 1 market data refers to the basic real-time information about the bid and ask prices for a security. It provides the best bid and offer prices available at any given time, commonly known as the national best bid and offer (NBBO). This data is sourced from various exchanges and trading venues and represents the most competitive bid and ask prices for a security. Level 1 market data is widely used by traders and investors to make informed decisions about buying and selling securities.

How does the SEC’s Regulation NMS relate to Level 1 market data?

SEC’s Regulation NMS (National Market System) is a set of rules and regulations implemented by the U.S. Securities and Exchange Commission (SEC) to modernize and enhance the national securities markets. One key aspect of Regulation NMS is the requirement for brokers to trade at the best available ask and bid prices, known as the National Best Bid and Offer (NBBO), when executing trades for their customers.

In relation to Level 1 market data, Regulation NMS mandates that brokers must provide their customers with accurate and timely NBBO quotes at the time of a trade. This ensures that customers receive the most favorable prices available in the market for their securities transactions. By requiring brokers to trade at the NBBO, Regulation NMS promotes fair and efficient markets, enhancing price transparency and investor protection.

What is FINRA TRF?

FINRA TRF (Financial Industry Regulatory Authority Trade Reporting Facility) is a platform provided by FINRA (Financial Industry Regulatory Authority) that allows member firms to report and record over-the-counter (OTC) transactions in exchange-listed equities. OTC transactions refer to trades that occur directly between parties outside of the traditional exchange platforms like the New York Stock Exchange or NASDAQ.

FINRA TRF serves as a centralized facility where member firms can report OTC trades and ensure compliance with regulatory requirements. It provides a mechanism for capturing and disseminating trade data, enhancing transparency in the securities industry. By recording and reporting OTC transactions through FINRA TRF, market participants and regulatory authorities can access accurate and timely information about these trades.

What are the benefits of the NBBO?

The National Best Bid and Offer (NBBO) provides several benefits to investors:

  1. Price Transparency: The NBBO displays the best available bid and ask prices for a security, providing transparency and ensuring that investors have access to real-time pricing information.
  2. Best Execution: By referencing the NBBO, brokers and market makers are obligated to execute trades at the best available prices, ensuring that investors receive the most favorable prices for their trades.
  3. Fairness and Equal Access: The NBBO promotes fairness by ensuring that all investors, regardless of their size or trading capabilities, have access to the best prices available in the market. This helps level the playing field for retail traders who may not have the resources to seek out the best prices across multiple exchanges.
  4. Regulatory Compliance: Compliance with the NBBO is required by regulations such as SEC’s Regulation NMS. This helps maintain the integrity of the market and ensures that brokers and market participants meet their obligations to provide the best available prices to investors.

Overall, the NBBO enhances market efficiency, price transparency, and investor protection by providing a standardized reference for determining the best available prices for a security at any given time.

Which UTP Participants are included in BBAE’s Level 1 market data?

BBAE’s Level 1 market data includes the following UTP Participants:

  1. CBOE BYX Exchange Inc.
  2. CBOE BZX Exchange Inc.
  3. CBOE EDGA Exchange Inc.
  4. CBOE EDGX Exchange Inc.
  5. Financial Industry Regulatory Authority (FINRA)
  6. Investors Exchange LLC (IEX)
  7. Long-Term Stock Exchange Inc.
  8. Members Exchange (MEMX)
  9. MIAX Pearl LLC (MIAX)
  10. Nasdaq BX Inc.
  11. Nasdaq PHLX LLC
  12. Nasdaq Stock Market LLC
  13. New York Stock Exchange LLC
  14. NYSE Arca Inc.
  15. NYSE American LLC
  16. NYSE National Inc.
  17. NYSE Chicago Inc.

These UTP Participants contribute to BBAE’s Level 1 market data, providing comprehensive pricing information for securities traded on these exchanges.

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