No, but just the activation of the API triggers the non-display fees. Even if you never enter an order. The exchange claims once the MD leaves the trading platfrom, they have no idea what it is being used for.
So, the IB TWS comes with an option to open its API through a socket. I mean the user can activate/deactivate it. IB is going to need to remove this option, or force the user to request that activation formally so it can be classified as non-display. Or the requests throught the API will need to be flagged... Hard to believe.
So let's say you are using a front-end GUI to manually trade markets, such as ButtonTrader for IB. This GUI has to interface with the API to send orders in to the market. Is this considered non-display?
I really don't see how this is enforceable on individual API users. Let's say someone connects to the API in order to generate his own charts. That is, almost by definition, a "display" use - right? So he fills out a declaration for the NYSE, claiming no "non-display" use. Exactly how will NYSE "audit" him? Raid his house in the middle of the day? Subpoena his computers? Besides, there are some bizarre formulations in the pricing docs: "Non-Display Use refers to accessing, processing or consuming data, whether delivered via direct and/or redistributor data feeds, for a purpose other than in support of the datafeed recipient’s display or further internal or external redistribution. It does not apply to the creation and use of derived data." So - you get the API data, you chart it (that's "display use") and create indicators (and display them). Indicators are "derived data", right? Then you trade, whether automatically or not, off the indicators. Then the "non-display use" does not apply?
Please keep in mind that I'm only here to help. I don't work for NYX-Data and I can't interpret their rules for them. We have been told that enabling any API will trigger not display data as long as the market data being passed through the API is real time. Period. We are hoping in the future they will make accommodations but have been given no reason to believe that they will. Because Lightspeed trader and Sterling trader are both owned by us we are forced to comply. Since we don't provide the MD on the other platforms we offer, we let those companies enforce this directly when they will be required to.
Robert - use of API would trigger the requirement for filling out the non-display data declaration for NYSE by the user of the data. But the declaration may state that there is no "non-display" data use, no?
As Robert posted: "These fees are coming directly from the NYSE. They are making us disclose who our API users are" Maybe IB doesn't know who their API users are, since its TWS platform maybe sends the same requests whether you use the GUI or the API. So maybe IB cannot disclose who their API users because IB doesn't know them. Maybe NYSE will enforce IB to collect somehow in a TWS future version who is using the API to access NYSE MD. It is all quite absurd, but who knows... Robert, what would have happened if Lightspeed Trader had the API enabled always by design and you couldn't disclose who your API users are simply because Lightspeed didn't keep any records of them (Lightspeed wouldn't need to if LTS had the API enabled and didn't make any difference between GUI and API)?
For everyone who is confused, I get it, the way they worded things, it's confusing, however it's actually pretty simple: If you are receiving a data feed, and are NOT interacting with it on a display, but are programatically using it to place trades, then it's "non-display" data, the end. So, if you are pulling the data from a vendor like IQFeed, or the dozens of other vendors that are not brokers (whose API does not send orders), then the onus is on you to declare whether you are using this data for non-display purposes or not. For those saying there will be no issue, they're probably right, but you will have to LIE to get away with it.
That is a very good question. I have asked that myself. I am wondering what explanation they will except where in API is present yet it will be considered display or just not be charged the non-display fee? According to their memo the only acceptable explanation that I can think of is delayed market data.