Nasdaq's New Market Replay
June 23, 2008
Expanding the functionality of its Market Replay tool, which offers a graphical interface to analyze historical quote data, Nasdaq OMX Group is releasing an enhanced version July 1 that provides more timely information on the price and size of trades in all U.S.-listed equities.
Nasdaq introduced the initial version--developed with Adobe Systems--in February, enabling users to enter ticker symbols and download data packets to generate line graphs of securities' national best bids and offers (NBBO). Customers can also see the bids and offers at various exchanges and zoom in on specific periods, allowing them to view price ranges touched by the NBBO within tighter and tighter timeframes.
The upgraded Market Replay lets customers look at the historical price and size of a trade, and its scope extends beyond Nasdaq Stock Market-listed stocks. In addition, the service now allows same-day access to data--the earlier version offered only the previous day's information. Nasdaq says the tool can be used to confirm best execution and review missed opportunities.
"With this highly innovative product, users can instantly discover in much greater detail--down to the millisecond level--how a trade was executed," said Nasdaq EVP Adena Friedman in a statement. "Greater transparency made possible by Market Replay engenders greater confidence in the markets."
The announcement follows the introduction of several initiatives to provide the investing public with greater access to trade data. The BATS Trading electronic communications network said earlier this month that it is displaying real-time best bids and offers over Yahoo Finance, and this week will begin offering Yahoo users full depth-of-book quotes. Nasdaq has announced agreements with a handful of major online partners to distribute data on securities' last sale in the U.S. and Europe; NYSE Euronext is planning to launch a similar service July 1. BATS is providing the data for free, while Nasdaq charges its distribution partners--as will NYSE.
Internet portals can pay for a limited version of Market Replay, offering it to users at no charge and recouping the expense through advertising. Nasdaq charges professional traders a flat monthly fee of $2,000, plus $50 per user per month.
