What Is Consolidated Tape?
Consolidated tape is an virtual system that collates real-time exchange-listed knowledge, very similar to price and amount, and disseminates it to patrons.
Key Takeaways
- Consolidated tape is an virtual system that collates real-time exchange-listed knowledge, very similar to price and amount, and disseminates it to patrons.
- Throughout the consolidated tape, rather a large number of primary exchanges, at the side of the New York Stock Change, the NASDAQ, and the Chicago Board Possible choices Change, document trades and quotes.
- Every get admission to on the consolidated tape displays the stock symbol for every company purchasing and promoting on the exchanges, the selection of shares traded (amount), the price in line with percentage for every trade, and the existing price compared to the previous day’s close.
Working out Consolidated Tape
Also known as ticker tape, consolidated tape provides secure, real-time knowledge generated by the use of rather a large number of market amenities, at the side of stock exchanges, virtual communications networks (ECNs), and third-market broker-dealers.
Throughout the consolidated tape, rather a large number of primary exchanges, at the side of the New York Stock Change (NYSE), the NASDAQ, and the Chicago Board Possible choices Change (CBOE), document trades and quotes. Securities will ceaselessly trade on a few trade; the consolidated tape evaluations not merely the protection’s procedure on its primary trade on the other hand the purchasing and promoting procedure on the entire exchanges.
Consolidated tape is overseen by the use of the Consolidated Tape Association, and its listed securities knowledge comes from two networks, neighborhood A and neighborhood B. Neighborhood A evaluations trades for securities listed on the NYSE, while neighborhood B evaluations trades from NYSE Amex, Bats, ECNs and regional exchanges.
Every get admission to on the consolidated tape displays the stock symbol for every company purchasing and promoting on the exchanges, such for the reason that selection of shares traded (amount), the price in line with percentage for every trade, a triangle pointing up or down, showing whether or not or no longer the price in line with percentage is above or beneath the previous day’s final price and each different amount showing how so much higher or lower than trade’s price used to be as soon as than the overall final price. The color green indicates the following purchasing and promoting price and purple indicates a cheaper price; blue and white indicate no industry.
Consumers can practice overall market sentiment by the use of keeping an eye on the consolidated tape. This data moreover helps technical analysts evaluate stock behavior as they chart the incoming knowledge over time.
History of Consolidated Tape and Ticker Tape
Consolidated tape comes from the period of time ticker tape. While tape is digital this present day, ticker tape got its determine to start with from the ticking sound emitted by the use of the mechanical device which printed long strips of paper with stock quotes. The ones mechanical ticker tapes gave option to virtual ones inside the 1960s. The consolidated tape used to be as soon as offered in 1976.
The principle telegraphic ticker tape used to be as soon as created by the use of Edward Calahan in 1867. The nice American inventor Thomas Edison modified this by the use of making improvements to on its original design and patented it in 1869. During the late 19th century, most brokers who traded at the NYSE had puts of labor located inside of sight to ensure they won a steady supply of the tape and the newest transaction figures of stocks. Messengers, or pad shovers, delivered the ones quotes by the use of working a circuit between the purchasing and promoting floor and brokers’ puts of labor. The shorter the distance between the purchasing and promoting floor and the brokerage, the additional up-to-date the quotes were.
