Quote Dissemination
Quote dissemination is the process of distributing real-time price quotations and market data from exchanges and trading venues to market participants. This critical market infrastructure function ensures traders and algorithms have current pricing information for making trading decisions.
How quote dissemination works
Quote dissemination systems collect, normalize, and distribute bid and ask prices from multiple market data feed handlers to subscribers. The process involves several key components:
The system must handle massive message volumes while maintaining strict latency requirements, especially for high frequency trading applications.
Next generation time-series database
QuestDB is an open-source time-series database optimized for market and heavy industry data. Built from scratch in Java and C++, it offers high-throughput ingestion and fast SQL queries with time-series extensions.
Market data protocols
Quote dissemination typically uses specialized protocols optimized for low latency and high throughput:
- ITCH/OUCH for direct exchange feeds
- FIX Protocol for standardized communication
- Proprietary binary protocols for enhanced performance
These protocols ensure efficient delivery of market data while managing bandwidth utilization.
Latency considerations
Quote dissemination systems must minimize latency at every stage:
- Data capture at source
- Protocol conversion and normalization
- Network transmission
- Last-mile delivery to subscribers
Modern systems measure latency in microseconds, with ultra-low latency data feeds being crucial for competitive trading operations.
Next generation time-series database
QuestDB is an open-source time-series database optimized for market and heavy industry data. Built from scratch in Java and C++, it offers high-throughput ingestion and fast SQL queries with time-series extensions.
Market data entitlements
Market data entitlements control access to quote dissemination:
- User authentication and authorization
- Subscription level management
- Usage tracking and reporting
- Compliance with exchange agreements
This ensures fair and controlled access to market data while managing costs.
Best practices
Effective quote dissemination requires:
- Redundant data paths
- Load balancing
- Real-time monitoring
- Data quality validation
- Throughput management
These practices help maintain reliable and consistent market data delivery.
Impact on market quality
Quote dissemination directly affects market quality through:
- Price discovery efficiency
- Market transparency
- Liquidity formation
- Trading costs
Poor dissemination can lead to market fragmentation and reduced efficiency.