Nasdaq unveils real-time US options market data feed

Nasdaq aims to make the US options market more accessible to investors with its latest real-time market data feed.

Exchange operator Nasdaq has launched a data feed for the US options market, which aims to be more manageable for firms looking to consume data on options.

Known as Nasdaq Smart Options, the data feed is described by the exchange group as ‘less resource-intensive’ for users, offering real-time market information and data from the standard Options Price Reporting Authority (OPRA).

The data feed supports national best bid and offer (NBBO), last sale trade messages and administrative messages for listed options, but individual exchange best bid and offer is not included. Nasdaq said this significantly reduces bandwidth costs, contributing to savings of more than 80% compared to connecting to the full OPRA feed.

“The options markets is vitally important to the financial ecosystem, but many users have not been equipped to handle the massive volume of messages from those markets,” said Oliver Albers, senior vice president and head of strategic partnerships with Nasdaq’s global information services. “Nasdaq Smart Options provides a manageable feed to provide easier access to this important information and gain valuable market insights.”

Nasdaq continued that the data package aligns closely with the needs and cost constraints of the industry, meaning that more investors can gain more insights for better-informed investing decisions in US options.

Christian Amott, CTO of market data feed provider QuoteMedia, added that the 80% reduction in bandwidth makes the options market more accessible to its clients and the investment community, as well as reducing time and costs for market participants. 

“As a data provider, it’s important that we supply our clients with the information they actually need, and in ways that they can use most effectively,” he added. “Nasdaq Smart Options enables us to reduce excessive ‘noise’ in our options quotes, with a far more concise display of information, making it easier to see what is really happening in the options market.”

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