What is considered Exchange Data?

Exchange data refers to the information provided directly by financial exchanges and includes essential market metrics that traders and analysts rely on for decision-making. Level 1 data typically consists of the best bid and ask prices along with the last traded price, whereas Level 2 data contains more detailed information, such as order book details, including the various price levels and the amounts available at those prices. This type of data is crucial for trading as it reflects real-time market conditions and allows market participants to gauge supply and demand dynamics effectively.

The other choices, while relevant in the financial information context, do not qualify as exchange data. Market analysis from third parties and vendor-generated news and analytics are interpretations or summaries of the data, not the raw exchange data itself. Similarly, aggregator customized data reports compile and present data but do not originate from an exchange directly, thus differentiating them from primary exchange data sources.