I'm curious to know If I can develop a proprietary method of recording/fetching daily intraday data. I should be able to distribute this data and have copyrights? Any thoughts?
Maybe I'm being dense, but I don't understand your question. Whose data would you be fetching? And why should you get copyright to it just by fetching it, unless you own the trading venue from which it originates? If you want to sell data as a service, then my undestanding is that you have to work out a deal with the source of the data, and you would be considered a "reseller" and would have to pay according to some contract. (Although I'm by no means an expert.) The question would best be directed to the source of the data, if that's what you're asking.
Read the agreement that you sign everytime you get access to a live feed. You are usually restricted to own use unless otherwise granted permission. Given some of the eye-watering prices I see for online database access (>$250K), I can see why they restrict how we use the live data we get.
I'm talking delayed data, EOD tick data. So hypothetically speaking if I stand on the street outside of a exchange with a pen and pencil. And write down a constant tick by tick of a stock; in this situation I have not signed any contracts. Will I be able to sell that? Obviously the assumptions in this situation are extreme. But I'm curious to know what you guys thnk.
That data is free, you can do anything with that. In terms of distributing or selling historical data, I believe there are a couple hoops to jump through. A lot of people do it though; it is not impossible.
Not legal advice by any stretch of the imagination, just some common sense thoughts. All relate to CME - Futures, no experience with US stocks. Data remains the property of the exchange. What we think of as data providers eg eSignal, are actually re-sellers. In my broker agreement; Information Providers may have a proprietary interest in the Information that they provide, and you agree that you will not reproduce, retransmit, disseminate, sell, publish, broadcast, or otherwise exploit such Information in any medium except to the extent such Information is publicly available through no action on your part. CME sells EOD data (daily updates) as follows; 1 Futures product - $120/mth Any 5 futures products - $180/mth All CME data incl Futures and Options - $1200/mth CBOT and NYMEX monthly - same CME Group ie all above - $1800/mth 1) Anytime someone collates something, they have rights to it. I can listen to the radio, write down all sports scores and post on my blog. If I scan the sports pages of The New York Times and post on my blog, they will come after me. 2) If someone is making money out of something, they will protect that. I can go to the ball-game, make detailed notes and write a game report on my blog. If I take a high quality video camera there and record the game and then stream from my blog, even if I do not get kicked out first, they will come after me later. They sell broadcast rights and they will protect that. Think of an exchange like a stadium. Authorised people go there to engage in activities, information about which is controlled by the organiser. Joe public gets to go and watch, that's it. You can take photos for the album, blog about it, no problem. Encroach onto something that generates money for the organisers and you find them breathing down your neck. If you want to know more without the cost of a lawyer (for now), visit the eSignal, Barcharts and IQFeed websites. Read the general package pages and see the declarations you have to make. Go into the signup pages and read all the notices and conditions and agreements. You can always cancel and exit at the point they ask for your credit card info. That should give you an idea whether you want to pursue this further, and how. Later on post a note about what you found, we can all learn from that.
Well if you become a data vendor by going through nasdaq the big hoop is the amount of money you will be spending.. Wish the entrance to this business was not being protected by piles of money
Thanks this is very interesting. I don't trade stocks but do like to understand this sort of detail anyway. You never know when good information will come in handy.