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Market Data Revenue & SIPs

How does CHX earn Market Data Revenue?

Quote and last sale data is disseminated for all National Market System (NMS) securities by two Securities Information Processors (SIPs) under an NMS plan. National securities exchanges (including CHX) and FINRA provide this data to the SIPs, which consolidate and distribute it.

Subscription fees are charged to those using the SIP quote and last sale data feeds. Funds in excess of those required for SIP operation are distributed to the exchanges and FINRA under a formula approved by the Securities and Exchange Commission (SEC). These funds are known as Market Data Revenue.

Market Data Revenue is allocated among the exchanges and FINRA based on the competitive quotes (Quote Revenue) and trades (Trade Revenue) each reports. Quote Revenue is earned when a trading center displays a competitive quote whether or not the quote results in a trade. Trade Revenue is earned whenever a trade occurs.