04/02/2021 |
TrendSpider Software Update: Major Data Feed Upgrade Announcement
In approximately 1-2 weeks, TrendSpider will be upgrading several core data feeds in the platform. This post is to give you information about the upgrade, the reasons for it, and the steps you will need to take to ensure that your account continues to work correctly during and after the transition. Please read it carefully and follow the directions at the bottom to ensure that everything continues to work correctly.
What is happening specifically?
In short, TrendSpider is replacing the data feeds used by the platform for US equities and ETFs with a much better data feed. Currently, TrendSpider uses a combination of various data feeds from NASDAQ, CBOE, NYSE and IEX to power the platform. These data feeds are used in different ways in the system. For example, NASDAQ and CBOE data is used for chart history and real-time updates, however, IEX and NYSE data are used to power the Market Scanner. We are replacing all of the current feeds with a new one sourced directly from ICE and NYSE to power the entire platform.
Why is TrendSpider making this change?
It’s not to save money – the new data feeds will cost TrendSpider about 45% more than the current ones. The reason we are making this change is because the new data feeds from ICE/NYSE are significantly better than the ones we use today. They will provide more robust real-time updates, better representation of true market conditions, and reduce irregularities and data errors significantly across the platform. Also, because one data feed will now be used to power the Market Scanner, Charts, and all other features, it will reduce the likelihood of false positives and negatives when scanning and alerting in the platform. As mentioned, we have simply outgrown the existing data feeds and upgrading these feeds will give you a better experience in the platform. The new data feeds are directly sourced from NYSE and provide much more robust coverage of the markets.
What are the benefits of the new data feeds?
Currently, we use data feeds from a Cboe-owned exchange called BATS. This data feed covers 8-11% of US equity trading activity and is commonly used by most online trading and charting tools because they do not restrict usage of the data in ways that other exchanges do. The downside of BATS is the coverage is relatively low and as a result some charts, in particular deep intraday timeframes and low volume names, may seem spotty at times. Furthermore, the BATS data feed has API limits on it that prevent us from using it in the more intensive areas of the system. That is why the scanner uses a different data feed, because if the scanner used BATS it would overwhelm our API limits and cause the entire system to crash. This works, but it leads to inconsistencies between the scanner and the charts at times because the data feed powering the scanner is different than the ones powering the rest of the system. Additionally, the BATS feed limitations prevent us from offering 1-minute alerts, force us to restrict timeframes and impose other unnatural limitations in the platform. In short, we think you deserve better. The new data feeds from NYSE cover 30-40% of all US equity trading activity, which is far more robust, and do not have any API call limitations on them, which means we are able to provide both better chart data and more robust functionality without constraints. This will lead to more features being unlocked and a better overall experience for users.
Will there be any additional costs for customers?
For 99% of customers, anyone classified as “Non-Professional” by the SEC (the vast majority of users) there will be NO INCREASED COSTS OR DATA CHARGES WHATSOEVER. TrendSpider will eat the market data costs for non-professional users out of our pocket. For professional users, as defined by the SEC, eventually (several months down the line) we will pass along a market data fee of $20 per month. Professional users will be notified well in advance of this switch and will have the opportunity to cancel if they choose so or start paying for the exchange fee as indicated by ICE/NYSE.
What do I have to do?
Honestly, not much. The main thing to understand is you will have to agree to new exchange rules, but ONLY if you have not already agreed to the market exchange agreement in the Market Scanner. If you have already accepted the market data agreement for the scanner, you will not have to accept it again. Everything will just work, out the gate. However, if you have not used the scanner before or have not accepted the market agreement for the scanner, you will be required to complete the exchange survey and agree to the exchange agreement before you will be able to access the system. We have taken care to make this process easy for you. Upon your next login to the system, you will be prompted to select which data feeds you wish to be entitled to, and if you selected US Stocks or Equities, you will then be asked to complete the market exchange agreement online. If you qualify as Non-Professional, you will be automatically entitled. If you qualify as a professional, you will be asked to complete additional paperwork. As mentioned previously, more than 99% of TrendSpider customers do not qualify as professional investors per SEC definitions.
What is the exchange agreement?
Exchange agreements are contracts between an end-user (you) and the market data exchange provider (in this case, NYSE.) It simply indicates the exchange rules around the market data. You are not able to violate the agreement in TrendSpider, so you should not be too worried about the specific terms. TrendSpider enforces the rules automatically so that you do not have to worry about it. Specifically, the agreement states you cannot export and resell the market data provided by NYSE to third parties. They do not limit or restrict your ability to use the market data for your own trading purposes, however, the exchange agreement is also required by NYSE in order to access the data at all.
What is the timing of the changes?
TrendSpider will provide 1 week for you to accept the exchange agreement before we switch data over. During this week, you will be asked to complete the agreement when you access the system. Roughly 1 week after you receive the first notification of this via email, we will switch US ETF data to the new data feeds. About 1 week after that, we will switch all remaining US equities to the new data feeds. This will happen in the background, and if you have completed the exchange agreements, there will be nothing further for you to do.
What happens if I do not complete the agreement on time?
If you do not complete the exchange agreement before we switch to the new NYSE data feeds, you will simply not be able to use the system on symbols that require this data entitlement. This means you will not be able to view charts for any US equities or ETFs until you complete the agreements. Any alerts that may be active before this date on symbols that require entitlement will cease working, and you will receive an automated notification (one per alert) to inform you that the alert is not currently able to check the market on your behalf. The moment you do accept the agreement, the alerts will reactivate. If you are not a US equity or ETF trader and do not need to access NYSE data, you will be able to continue to use non-entitled data (forex, crypto, etc.) in the platform going forward. You will also have the opportunity to activate NYSE data in the future, so don’t worry, you can change your mind later if you do decide that you do want this data after all.
