If you are building a financial web site or application that will require delayed or real-time exchange data, this presentation is for you. It will familiarize you with some key concepts as well as what to expect in terms of fees and agreements.

1. UNDERSTANDING EXCHANGE
AGREEMENTS AND FEES
Stephane Dubois
CEO & Founder, xignite
sdubois@xignite.com
@sdubois

2. CONTENT
• A Little History of U.S. Stock Exchanges
• Key Concepts in U.S. Equity Markets
• Fees and Agreements
• What Solution Is Right For You?
Audience
If you are building a web site or application that will require
delayed or real-time exchange data, this presentation is for you. It
will familiarize you with some key concepts as well as what to
expect in terms of fees and agreements.
This presentation
only covers U.S
equity markets.
Things are a bit
different in other
countries and for
other asset classes
such as futures and
options.

3. 1949
Baltimore
1954
Washington
1969
Pittsburgh
NASD1938
Philadelphia 1875
Stock Exchange
1971
1908 1929 1953
New York Stock Exchange (NYSE)
1817
2007
Boston Stock Exchange (BSE)
1834
NASDAQ
BX
2008
2008
NYSE AlterNext
1998
NASDAQ
NASDAQ & AMEX
Market Group
2002
FINRA
2002
1998 Island ECN INET
1967 Instinet 2003
2005
NYSE Regulation 2007
OMX
2007
Archipelago
Securities
Exchange
2005
Pacific Exchange
1997
2006
1882
Los Angeles Oil Exchange
1957
San Francisco Stock and Bond Exchange
EuroNext
2007
NYSE Arca
NASDAQ PHLX
NYSE Mkt
2005
BATS Trading
1998
Attain ECN
2005
DirectEdgeKnight
2007
ISE Stock Exchange
2006
CHI-X Europe
2011
Copyright Xignite © 2012-2014
Chicago Stock Exchange (CHX)
1882
St Louis – Cleveland - Minneapolis
1949
New Orleans
1959
1993
1885
Cincinnati Stock Exchange National Stock Exchange
2003
2007
CBOE Stock Exchange
2011
1790 Board of
Brokers
2013
2000
2013
A LITTLE
HISTORY OF
U.S. STOCK
EXCHANGES
US Stock Markets Go Back 220 Years…Stock exchanges are a persisting symbol of capitalism. Their rich
complex history demonstrate how the spirit of entrepreneurship has
inhabited our financial markets for hundred of years.

4. KEY CONCEPTS IN US EQUITY MARKETS

5. FINANCIAL MARKET DATA IS NOT FREE!
• This domain is complex:
• Depends on the data, how you get it and what you
do with it, etc.
• Changes on a regular basis
• Subject to SEC regulation
• Lots of corner cases and exceptions
• If you don’t follow the rules you will be
liable!
• So let’s begin demystify…
Receiving delayed or real-time exchange data is generally subject to agreements and fees

6. THE CONTEXT
So you want to receive exchange data for your app, web site or fintech platform?
EXCHANGE
VENDOR DISTRIBUTOR
USER
USER
USER
USER
USER
USER
EXCHANGE
Owns The Data
Consolidates
Distributes
Consolidates
Distributes
Presents
Distributes
Views
Consumes
Feeds Feed API
xignite
By receiving and
distributing market
data, you become a
distributor in the
eyes of the
exchange.
This means that you
may have to have
an agreement with
the exchange and
pay fees.
Note that many
exchanges will treat
Internal Distributors
and External
Distributors
differently.
External
Internal

7. MONEY FLOWS
Who pays for what rights and service and to whom?
EXCHANGE
VENDOR DISTRIBUTOR
USER
USER
USER
USER
USER
USER
EXCHANGE
xignite
There is a difference
between licensing the
rights to use the data
with the data owner
(the exchange) and
buying a services to
access the data
(which could be the
exchange if you go
directly to them or
could be your vendor).
You pay the exchange
for the license to the
data and your vendor
for access to that
data.
Licenses/pays for access to data
Licenses/pays for right to redistribute data to others
Licenses/pays for right to use/view data
External
Internal

8. IF YOU RECEIVE OR DISPLAY DATA
Delay (Delayed Quotes/Real-Time Quotes)
Depth (Last Sale/BBO/Level 2/Depth of Book)
Breadth (Single Exchange/Consolidated Tape)
Source (NYSE/NASDAQ/BATS/etc.)
Type of User (Pro/Non-Pro)
Usage (Display/Non-Display/Wallboard/Web/etc.)
Control (Control of Access/Control of Display)
You become a Data Distributor for the exchange.
As a distributor, you may need to sign an agreement and pay licensing fees.
Those fees will depends on:
Many factors come
into play regarding
agreements and
fees when you get
data from an
exchange.
The more data you
get, the higher the
costs and the
licensing
requirements.
Make sure you don’t
get overboard and
simply match your
solution to your
requirements.

9. IMPACT ON COSTS
• Real-Time data is fee-liable and requires exchange agreements.
• Delayed data is often not fee liable, but licenses may need to be in place either
way (ex NASDAQ).
• Historical data is often not fee-liable based on the delay policies, though access
to historical data is often fee liable.
DELAY
• Last Sale data is generally cheaper than BBO, Depth of Book, or Level 2 data for a
given exchange.
DEPTH
• Consolidated Tape data is fee liable (CTA, UTP).
• Direct Exchange data or alternative access to consolidated data is priced
differently via various models. Exchanges can assist you based on your needs.
• Exchange-specific data is priced by each exchange using different pricing models.
BREADTH
The choices you make will impact your costs!!!
COSTS
BREATDH
DEPTH DELAY
Understanding
market data means
understanding the
key factors that will
affect costs and
functionality in your
solution.

10. DELAY
What do the terms Delayed and Real-Time really mean?
Trade Occurs Market Close
15mn 15mn
Real-Time Delayed End of Day
4:00pm
Delays have a large
impact on costs and
licensing but also a
significant impact
on user
experience.
End of Day data is
not fee liable in the
US (with exceptions
like Mutual Fund
prices).
Real-time data is
always fee-liable.
Think about what
the minimum
requirements for
your app are.
TYPE OF DATA

11. DEPTH
What depth of quote information is available?
LAST SALE BEST BID OFFER* DEPTH OF BOOK LEVEL 2
Symbol MSFT
Last Sale 25.17
Last Qty 500
Symbol MSFT
Last Sale 25.17
Last Qty 500
Bid Qty Bid Ask Ask Qty
500 25.15 25.17 300
Symbol MSFT
Last Sale 25.17
Last Qty 500
Bid Qty Bid Ask Ask Qty
Top ofBook 500 25.15 25.17 800
2,000 25.14 25.18 900
3,400 25.13 25.19 1,300
5,000 25.12 25.20 6,200
6,500 25.11 25.21 8,500
700 25.10 25.22 800
1,200 25.09 25.23 1,760
505 25.08 25.24 900
1,200 25.07 25.25 1,650
DepthofBook
Symbol MSFT
Last Sale 25.17
Last Qty 500
Market Maker Bid Qty Bid Ask Ask Qty Market Maker
ARCA 500 25.15 25.17 400 CIBC
BRUT 1,000 25.14 25.17 400 MSCO
COWN 500 25.14 25.18 400 MLCO
SCHB 500 25.14 25.18 300 RAJA
IBKR 1,000 25.13 25.18 200 MRT
INCA 200 25.13 25.19 100 BTRD
MLCO 1,000 25.13 25.19 200 NITE
ITGI 200 25.13 25.19 300 NMRA
LEGG 5,000 25.12 25.19 700 ARCA
Depth can impact price as well as your ability to display the
data to large user base (e.g. on a public web site).
Make sure you determine what you really need. Chances are
that Last Sale and BBO are all you need for your app.
* aka BBO, LEVEL 1, Top of Book
Depth is simply the amount of information you get in your data
feed. It ranges from only the price of the last sale or trade to
details about all outstanding bids and asks and the name of
market makers who placed those orders (Level 2 data).
Level 2 is the top BBO from each Market
Participant. Some exchanges also offer feeds
with every single BBO from each participant at
every price (e.g. NASDAQ TotalView).

12. Consolidated
Feed
NASDA
Q
PSX
BX
TRF
NYSE
NYSE
ARCA
NYSE
MKT
BATS
Direct
Edge
NSX
CBSX
CHX
BREADTH
There are many equity exchanges in the US and data feeds can include some or all of them
* Or some other formula
•Merges all feeds from all exchanges
•Price is latest price on any exchange
•Volume is consolidated volume across all exchanges
•Feeds are fee liable and subject to End-User Fees
Consolidated Feed
•Only includes trades/quotes from that exchange
•Includes data for stocks listed on other exchanges
•Price is from last trade on that exchange*
•Volume is sum of trades on that exchange
•Liquidity and coverage vary based on market share
•Pricing is set by each exchange
Exchange Specific Feeds
If you thought there were just a couple exchanges in the US, think again! Wanting a consolidated
feed can have a significant impact on costs—especially if you need real-time data. Exchange
specific feeds provide more cost effective alternatives that could work well for your use case.
aka Securities
Information Processor.
There are 2 in the US:
CTA and UTP.

13. TRADING vs LISTING
How come I can get quotes for NYSE-listed securities from a NASDAQ feed?
• The primary listing exchange is the main exchange
were a security is bought/sold.
• This is the exchange were the IPO occurs.
• Not all exchanges list (only NYSE, NASDAQ, CHX and
BATS do).
About Listing
• Exchanges receive orders from participants
• Exchanges must by law provide best execution, which
means routing orders to other exchanges.
• Market centers can execute orders for securities they
do not list. Some are not even the first market center
for securities they list.
• This means that exchanges have quotes for securities
they do not list.
About Trading
Institutions
Individuals
Institutional
Broker/Dealers
Retail
Broker/Dealers
Order
Matching
Order
Routing
Market Makers

14. EXCHANGE MARKET SHARE
In terms of volumes and value traded
0%
5%
10%
15%
20%
25%
30%
35%
40%
NASDAQ NYSE BATS CHX NSX CBSX TRF & FINRA
Volume Value
The chart shows data
for April 2014.
NASDAQ has 3 venues
(NASDAQ, BSX and
PSX). NYSE has 3
venues (NYSE, ARCA
and MKT) and BATS
has 4 venues (BZX,
BYX, EDGX, and
EDGA).
TRF and FINRA are
the trades occurring
off exchange (dark
pools and
internalized trades
reported to the
tape).
While NASDAQ and NYSE list most securities in the US, every exchange trades each others’ listed
securities. So an exchange-specific feed will actually give you quotes on most securities. But you will only
get a fraction of the market liquidity—which depends on the exchange market share shown on this chart.

15. TYPE OF USERS
PROFESSIONAL SUBSCRIBER
•Any natural person who is either:
•Registered or qualified in any capacity with the SEC, the CFTC, and other organizations
•Engaged as an "investment advisor" (whether or not registered or qualified)
•Employed by a bank or other organization exempt from registration to perform functions
that would normally require registration or qualification
NON PROFESSIONAL SUBSCRIBER
•Any natural person who is not a Professional Subscriber
This element matters when you display real-time data to users

16. FEES FOR U.S. EQUITY PRODUCTS

17. AGREEMENTS
• You will need an agreement if either:
• You receive a datafeed
• You receive real-time data (even as an individual)
• Exceptions:
• The data is hosted by another firm (not a Datafeed)
• You are a firm receiving only NYSE Delayed Data
• Beware when a vendor says an agreement is not
needed. Check with the exchange!
• Agreements:
• Are executed directly with exchanges
• Will define your reporting requirements.
• Your vendor can initiate the process for you and
provide contact information.
When will you need an agreement?

18. REPORTING
• Exchanges require detail reporting for:
• Real-time External Professional Subscribers
• Real-time & delayed Datafeed Recipients
• Exchanges do not require reporting for:
• Delayed Internal and External Subscribers
• BATS requires no user reporting
• Reporting is done monthly using each
exchange’s reporting system
• Exchanges bill you based on what you report
• Exchanges can back-bill you for misreported data!
• Exchange can audit you so follow the rules!
Will you be subject to reporting?

19. WHAT IS A DATAFEED?
• You get data from a vendor. Is it a datafeed?
• You need to answer two simple questions:
• Do you control the display of the data?
• Do you control access or entitlement to the data?
• If the answer is Yes to any of those questions,
you are getting a datafeed.
• An API is always a Datafeed.
This is a key concept to determine whether you have to pay fees or not.
DATAFEEDS
•Continuous Feeds (Sockets, etc)
•REST & SOAP APIs (XML, JSON)
•Files (CSV, Binary)
NON DATAFEEDS
•Hosted Widgets
•Hosted Web Pages
•Hosted Terminals

20. MONTHLY DISTRIBUTOR FEES
Delay Depth UTP3 CTA3
Delayed NBBO1 n/a n/a n/a
$250
+$250 Annual Admin Fee
No Fee
Full
NASDAQ4,7,8
$2,500
NYSE/MKT2
$1,250
n/a n/a n/a
Real-
Time
Level 2
NASDAQ
$2,500
NYSE/MKT2
$1,250
NYSE6
$8,000
MKT2
$1,000
ARCA
$3,500
PITCH4
$5,000
n/a
Level 1
NASDAQ Basic4,8
$1,500
NYSE5
$4,000
MKT2,5
$2,250
ARCA5
$2,250
TOP4
$2,500
$1,500 n/a
NBBO1 n/a n/a n/a $1,500
NYSE
$2,250
ARCA/MKT
$1,600
Last
Sale
NASDAQ Last Sale4,8
$1,500
NYSE
$2,500
MKT2
$1,500
ARCA
$1,500
Last Sale4
$2,500
$1,500
NYSE
$1,750
ARCA/MKT
$1,400
For U.S. Exchanges as of June 2015 – Indirect Fees for External Distribution
1. “National BBO” across all markets via a CTA/UTP consolidated feed
2. NYSE MKT previously known as American Stock Exchange
3. UTP Administered by NASDAQ. CTA Administered by NYSE.
4. Includes data for all US equities (NASDAQ, NYSE, MKT, etc.)
NOTES
• These are only the exchange fees. Vendor subscription fees are additional.
• These prices are indicative. The exchange offering maybe more extensive than suggested.
• Please check the web sites of each exchange of additional information.
• BATS fees are for BZX market only (BYX and DirectEdge excluded).
If you receive a
Datafeed, you will
need to pay the
Distributor Fees.
Fees can be
different for Internal
(employees only)
versus External
Distribution. What
we show here are
External Distribution
fees.
There are also fees
associated with
taking feeds directly
from the exchange.
What we show here
are indirect fees
(i.e. you take the
data from a vendor
like Xignite).
5. Includes BBO and LS
6. Via NYSE OpenBook Product
7. Via NASDAQ TotalView Product
8. Plus an additional $1,000/Year Administration Fee

21. MONTHLY USER FEES
Delay/Depth UTP4 CTA4
Delayed NBBO1
n/a n/a n/a No Fee No Fee
Full
NASDAQ5,8
Pro: $70
Non-Pro: $14
NYSE/MKT2
Pro:$6
Non-Pro:$1
n/a n/a n/a
Real-
Time
Level 2
NASDAQ
Pro: $50
Non-Pro: $9
NYSE/MKT2
Pro:$6
Non-Pro:$1
NYSE7
Pro: $60
Non-Pro: $15
MKT
Pro: $5
Non-Pro: $1
ARCA
Pro: $40
Non-Pro: $10
n/a n/a
Level 1
NASDAQ Basic5
Pro: $13
Non-Pro: $0.50
NYSE/MKT2
Pro: $6.50
Non-Pro: $0.25
NYSE6
Pro: $4
Non-Pro: $0.20
MKT:
Pro: $1
Non-Pro: $0.05
ARCA6:
Pro: $4;
Non-Pro:
$0.25
Pro: $4
Non-Pro:
$0.10
Pro: $22
Non-Pro: $1
n/a
NBBO1
n/a n/a n/a
Pro: $22
Non-Pro: $1
NYSE3
Pro <1000 users: $27
Non-Pro: $1
ARCA/MKT2:
Pro: $23
Non-Pro: $1
Last
Sale
NASDAQ3,5:
<10,000 Users:
$0.60
NYSE/MKT2,3:
<10,000 Users:
$0.30
NYSE:
Pro: $4
Non-Pro: $0.20
MKT2:
Pro: $1
Non-Pro: $0.05
ARCA:
Pro: $4
Non-Pro:
$0.25
Pro: $4
Non-Pro:
$0.10
Pro: $22
Non-Pro: $1
NYSE3
Pro <1000 users: $27
Non-Pro: $1
ARCA/MKT2:
Pro: $23
Non-Pro: $1
For U.S. Exchanges as of June 2015 – Per User Fees for External Distribution
User Fees can be
different for Internal
(employees only)
versus External
Distribution. What
we show here are
External Distribution
User fees.
Usage fees apply to
any Distributor
irrespective of the
means of
transmission or
access.
There are also fees
associated with
taking feeds directly
from the exchange.
What we show here
are indirect fees
(i.e. you take the
data from a vendor
like Xignite).
1. “National BBO” across all markets via a CTA/UTP consolidated feed
2. NYSE MKT previously known as American Stock Exchange
3. Sliding scale available. Pricing goes down as number of users increases.
4. UTP Administered by NASDAQ. CTA Administered by NYSE.
5. Includes data for all US equities (NASDAQ, NYSE, MKT, etc.)
NOTES
• These are only the exchange fees. Vendor subscription fees are additional.
• These prices are indicative. The exchange offering maybe more extensive than suggested.
• Please check the web sites of each exchange of additional information.
• BATS fees are for BZX market only (BYX and DirectEdge excluded).
6. Includes BBO and LS
7. Via NYSE OpenBook Product
8. Via NASDAQ TotalView Product
9. Plus an additional $1,000/Year Administration Fee

22. WHAT’S RIGHT FOR YOU?

23. DECISION SUPPORT DRAFT
Is delayed data
sufficient for my use
case?
Use
Delayed Data
Do I absolutely need
all trades and quotes
or is this data for
display only?
Use a Consolidated
Feed solution
Do I care about
depth of coverage or
operate in a trading
environment?
Use
NASDAQ Last Sale or
NASDAQ BASIC
Use a BATS-only
Solution
What’s the right market data solution for my project?
• Contact us at info@xignite.com to discuss your requirements.
• We can help you:
• Figure out what service is best for you
• Estimate your exchange fees and costs
• Help you get started with your exchange agreements
• And more…
Yes
Yes
Yes
No
No
No
Depth of coverage is
the amount of
information you get
in your data feed. It
ranges from every
single quote/trade
to just the best
bid/offer or last sale
trade.
Fees can be
different for various
depths and how you
distribute the data.

24. For Additional Information click on the logos:
http://www.nasdaqtrader.com/Trader.aspx?id=Global_Market_Data
http://www.nyxdata.com/Data-Products/Equities
http://batstrading.com/market_data/products/
THANK YOU
Questions? Contact Cathy Park cpark@xignite.com
Stephane Dubois
CEO & Founder, xignite
sdubois@xignite.com
@sdubois