Market Data

• Partners can elect to obtain market data from their own third-party provider or directly from DriveWealth on a per account basis

• DriveWealth does not offer streaming market data services.

• Market data pricing is set by the exchanges and subject to change. Non-U.S. Partners and some investment offerings do not require market data, though it can enhance a customer’s experience. U.S. brokers with a self-directed trading offering and U.S. Advisors with non-discretionary offerings, however, are required by regulators to offer a consolidated exchange data feed to ensure the customer is shown best price execution.

  Currently DriveWealth offers 3 different options for Market data:

• 15 Minutes Delayed Quotes

• CBOE (BZX) Real Time Price Quotes

• Consolidated Exchange Data (NBBO)

  Market Data Options	Definition	Required?	Typical Use
  15 Minute Delayed Pricing	Reported from the NBBO1 feed	No	Watchlist and symbol search screens
  Cboe (BZX) Real Time Price Quotes	Quotes reported by the Cboe BZX exchange, aka “BATS Real Time”	No	Display data prior to and on execution for non-US Partners/ Customers – e.g. Stock Card page, Watchlist, Stock Category Lists
  Consolidated Exchange Data (NBBO1)	SIP2 data aggregated across all public U.S. exchanges	Yes: U.S. self-directed or Advisor non- discretionary offerings No: Advisor Managed or Non-US Partners or Customers	Display data before a customer submits a trade, and prior to execution for US Partners/Customers

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Note

(1) The NBBO, or the National Best Bid or Offer, refers to the best price across U.S. public exchanges for a listed security.
(2) The Securities Information Processor (SIP) links the U.S. markets by processing and consolidating all protected bid/ask quotes and trades from every trading venue into a single, easily consumed data feed.

Market Data API Requirements

All of DriveWealth's Market Data endpoints require that the userID of the customer is passed as a parameter within the API call being made. Since DriveWealth pulls Market Data directly from the Exchange and distributes it to our Partners, who in turn distribute it to their end customers, we have reporting requirements as per the Exchanges to pass on the customer information who is actually viewing/utilizing the Market Data.

In order to show Market Data to a customer, the customer should have a user established on DriveWealth's platform via the Partner's App in order to see Real-Time data.

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Showing Market Data to Unregistered Users

A Partner might have a use case to show Market data to non-registered users. In this scenario, the Partner will need to pass in their parentibID and MUST ONLY show the 15-min delayed Market Data feed.

Utilizing the Data Points

For Partners displaying market data to their end customers, following is the recommended approach to display the various data points:

1. bid - a security can be sold only at the bid price. This should be shown to the customer at the time when they are intending to sell a security.
2. ask - a security can be bought only at the ask price. This should be shown to the customer at the time when they are about to buy a security.
3. lastTrade - is the last reported price from the exchange at which the security was traded.
4. close - is the close price for a particular trading day.
5. priorClose - shows the close price from previous trading day.

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Using close and priorClose

close will remain as a static value of 0 throughout the day when the market is open and will be update after market close. On next Market Open, it is set back to 0.
priorClose will only update when Market opens and will be set to the close value of the previous trading day for a security.

Using NBBO vs CBOE (BZX)

For Partners using DriveWealth's Real-time quotes endpoints, choosing between CBOE (BZX) and NBBO Quotes really depends on 2 factors: Pricing and Customer Experience (Accuracy of the Quote).

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Note

*For pricing details, please refer to your Signed Agreement with DriveWealth.

** DriveWealth will execute trades at the Best Execution Price, seeing different prices from Market data endpoints does not mean it is executed at that price.

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Market Data FAQs

The Most frequently asked question for Market Data Endpoints is the 0 values being returned. This could be happening for a number of reasons as listed below:

1. The trade volumes of the security is negligible. Mostly the case for low volume ETFs, unlikely for highly traded securities like AAPL, TSLA, etc.
2. While using BZX Quotes around Market Open (9:30 AM ET), even highly liquid securities might not have trades executed on BZX Exchange that morning leading to 0 ask/bid values being returned

Also, since DriveWealth does not support Pre-Market and After Hours trading, the Market Data Endpoints will return a static value for ask/bid post Market Close (4:00 PM ET)