National Best Bid and Offer (NBBO)

National Best Bid and Offer (NBBO)

 

We are happy to announce the new offering by dxFeed of the National Best Bid and Offer (NBBO) – CTA/UTP feed.

 

The data feed shows National BBO and traded volume (the first level above and below NBBO) covering all US stocks and all US exchanges (20+).

 

The NBBO is displayed on Bookmap chart and can be either the same or better than the BBO from Nasdaq & EDGX. The volume collected from all exchanges is shown through the 3D volume bubbles, the volume bars and the volume columns (SVP or CVP).

 

NBBO cannot be added as a single feed and requires at least one other data feed as a prerequisite.

 

Current and new Nasdaq + EDGX bundle subscribers may add the NBBO feed until Feb 1st 2020 for free! To subscribe, log in to your personal dashboard and select the NBBO feed from the “Add Subscriptions” tab.

 

Single equity feed subscribers (Nasdaq or EDGX) can get NBBO for $34/mo.

     

    The value of NBBO

     

    US equities are traded over 13 exchanges and more than 30 active ATSs and significant bilateral trading activity. It is no wonder that one of the most common complaints about U.S. market structure is “too much fragmentation.”

     

    Despite all the different exchanges and venues, the SIP (Securities Information Processor) combines all quotes and provides the NBBO (National Best Bid and Offer). The NBBO allows everyone to know the best bid and offer regardless of what venue they are posted on, all less than a millisecond (one-thousandth of a second) after the quotes change. No other industry can claim to have the same, market-wide, fair and equal pricing for their customers.

     

    Traders get the total volume across all exchanges (first level) and can view the smallest spread (National Best Bid and Offer). This is very important for the following reasons:

     

    • Know what price you can buy/sell in with market orders. This is more important with symbols that are not heavily traded or that are mainly traded on NYSE.
    • View all market traded volume, not only the exchange(s) you are subscribed to.
    • See the spread behaviour over time.

     

    How to subscribe and connect

     

    1. Log in to your personal dashboard and select the NBBO feed from the Add Subscription” tab. Note that you will need at least one active equity data feed to be able to get the NBBO feed.
    2. Make sure that you have version 7.1 or above. You can download the latest version here.
    3. Once connected to US equities data on Bookmap you can switch between NBBO or BBO using the Visible Component icon on top of the chart

     

    Terms & Prices

     

    1. Current and new users that add NBBO before Feb1, 2020 will get it for FREE. (as long as subscribers keep their bundle subscription active)
    2. The cost of NBBO for non-bundle subscribers and after Feb 1st for everyone is $34/mo
    3. To subscribe, just log in to your personal dashboard and select the NBBO feed from the “Add Subscriptions” tab.

    Additional information

     

    • NBBO does not contain a depth of market data, so when using with Bookmap, which is why it is only available for subscribers with at least one other equity subscription (Nasdaq, EDGX or both). This allows traders to keep the full order book data and heatmap available.
    • The minimum accountable size of NBBO is 100 stocks, therefore, you may observe a smaller spread in Nasdaq when BBO sizes in Nasdaq are smaller
    • While running Bookmap, if you wish to know if you have NBBO, you can look at the visible components. If NBBO checkbox is available that means you have NBBO

     

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    Bookmap Pro Trader webinar w/ Kevin Toch on Thur April 2 at 11 am ET. Kevin is a market microstructure specialist and will discuss How to Trade in a High Volatility/Low Liquidity Environment. Not to be missed!
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    #bookmap #orderflow #ES_F #trading