Nasdaq Level 2 provides the top-of-file position for Nasdaq exchange participants. Nasdaq Quotation Dissemination Service (NQDS) was the first product to provide Nasdaq market participant depth to the investing public. In 2007, Nasdaq expanded the Level 2 product to include market participant depth in NYSE-, NYSE MKT- and regional exchange-listed securities.

The Nasdaq Level 2 product features the following data elements:

• Top-of-File Quotations: For registered Nasdaq® market participants in Nasdaq and CQS issues, Nasdaq calculates and disseminates a top of file position based on attributed orders and
  quotations entered by the firm.
  • Level 2 will provide the best bid and ask position for each Nasdaq market participant registered in an issue.
  • For the unattributed orders in the Nasdaq system, Level 2 reflects the top buy and sell prices under the MPID of “NSDQ”.
  • For bandwidth efficiency reasons, Nasdaq processes bid quotation updates as separate events than ask quote updates on the Level 2 data feed.

• Administrative messages, such as trading actions, symbol directory, and market participant position messages:
  • Trading action messages are used to inform market participants when a security is halted or released for trading.
  • Symbol Directory messages provide basic security data such as the market tier and Financial Status Indicator. 
  • Market participant position message carries the Primary market maker status, Market participant status, and and market maker mode fields used by some firms to comply with market regulations.

Benefits & Features

• Helps Nasdaq market participants track their quotation positions and comply with SEC and Nasdaq marketplace rules
• Provides investors and traders with a bird’s-eye view into Nasdaq market participants’ quotation activity and market momentum

For greater depth information, please refer to Nasdaq TotalView.