Cboe Global Markets is offering a new real-time data feed for stock quotes and trade information to smaller retail brokers. The new low-cost service will be useful for brokers who serve non-professional users.
Expanding its user base
Cboe is planning to expand its “Data Recipients” user base by appealing to smaller brokers serving retail clients. According to the firm, the new program is designed to help small brokers and all individual investors that are signed up to their platforms. They suggest that the product is a result of the high demand they received from smaller market recipients who wanted to consume comprehensive market data on a single platform.
To qualify for the program, a broker-dealer must have at least 50% non-professional traders as subscribers. However, the total number of such users shouldn’t exceed 5,000. With this new offering, qualified broker-dealers will get access to the Cboe One Summary Feed which delivers a more holistic view of aggregated stock quotes as well as trade information on the US equities exchanges run by the company.
Brokers can make use of this full package at $3,500 per month and provide more accurate data about the markets to their users.
What should brokers expect?
The market data product by Cboe covers all four venues offered by the company- EDGA Exchange, BYX Exchange, EDGX Exchange, and BZX Exchange. It provides real-time data for all these venues without needing multiple products and licenses. The unified view can provide a more comprehensive view of the whole. With one of the largest stock exchange operators sharing their data, brokers should expect better quality and enhanced trading experience for their clients.
The One Feed will be offered in two versions- Cboe One Summary Feed and Cboe One Premium Feed. Both the options will include aggregated quotes for Best Bid and Offer and well as trade data (like the Last Sale). The Premium feed will include more in-depth information (up to 5 levels) that will include the size of trades on all its four exchanges.
Kevin Carrai, VP and global head of Market Data at the company, commented on the offering and said, “Our new Small Retail Broker Distribution Program is designed with this mission in mind.” He said that the new offering would help in democratizing access to US equities data available in real-time and provide trade information to all traders with lower costs and wider distribution.