I would like to know how market data entitlement and permissions works at Vendor level and exchange level?
- if our firm receive Realtime data from Vendor or
- directly from exchange..
What permissions and formalities are required?
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If your firm is considered to be "professional", there are significant legal agreements involved.
Your data vendor can answer questions relating to the requirements for them to provide data to you as a professional firm. Sometimes you'll need to eneter into an agreement direct with the exchange before the data vendor will provide you data for that exchange, especially if it's a full tape feed.
If you go direct to the exchange for data (typically via dedicated data links), most exchanges usually have a complex set of legal agreements to sign and regular reporting of usage.
It's not possible to be any more specific unless you give us more detail on your firm, number of users, type of data used, external redistribution, desire to create financial instruments from the data, display or non-display usage etc.
Here are some links to a few exchange web sites regarding their fees and policies here: https://www.nyse.com/market-data/pricing-policies-contracts-guidelines
https://www.ctaplan.com/policy Has good information on what is required for data vendors. There are lots of rules around receiving, processing and using a data feed. CTA and UTP are the main consolidated tapes, and they both have their own rules/agreements.