Direct Answer
The consolidated tape is a unified stream of data that aggregates all trades and quotes from every U.S. exchange into a single authoritative source. Managed by the Securities Information Processors (SIPs), it establishes the National Best Bid and Offer (NBBO), providing a baseline for price discovery and regulatory compliance across the fragmented U.S. equity markets.
Types of Consolidated Tapes
| Tape Type | Content & Function | Managed By |
| Trade Tape | Consolidates all executed trades across every exchange. | SIP (CTA/UTP) |
| Quote Tape | Aggregates best bid and offer (BBO) quotes to establish the NBBO. | SIP (CTA/UTP) |
| Consolidated Tape | Combines both trades and quotes into one unified stream. | SIP (CTA/UTP) |
Frequently Asked Questions
- What is the difference between SIP and proprietary feeds? The SIP is the regulatory authority for the “official” price, while proprietary feeds (like those delivered via NxCore) are often faster and include more granular “depth-of-book” data.
- Is the SIP fast enough for HFT? Generally, no. While the SIP has improved significantly, proprietary feeds usually reach the end-user faster because they avoid the centralized aggregation delay inherent in the SIP.
- What is the NBBO? The National Best Bid and Offer is the highest bid price and lowest ask price available across all exchanges.
Who This Is For (and Who It’s Not)
Who This Is For
- Compliance officers ensuring “best execution” requirements are met.
- Traders who need a reliable, authoritative benchmark for US market prices.
- Firms building risk systems that rely on official exchange data.
Who This Is NOT For
- Latency-arbitrage traders who require the absolute lowest latency proprietary feeds.
