Does NBBO should be same on different exchanges or they do differ per exchange?

C

congrats

Hello guys, I noticed something strange today and was not sure so thought to shout out to seek expert opinion/s regarding NBBO seen on IB's SMART exchange vs AMEX exchange. Please see the captured image below.
 

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Don’t know about options but that Amex one shouldn’t be labeled NBBO. NBBO is from all the exchanges. Just google NBBO. Should find the info to explain.
 
Yes, i see the same bid/ask for AAPL @322.50 - 2/21/2020 within TWS option chain.
So i assume that IB is feeding level-2 NBBO for its option chains.
Let me talk to them as well and confirm it.
 
Robert Morse said:
NBBO is the National Best Bid Offer, typically the aggregate of the 16 options exchanges. You would have to ask IB if that is what it represents on their Option Level 2.
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Talked to IB tech. representative. He mentioned that Level-2 NBBO is only for securities and not for options.
 
I'm not sure how to respond to that. So what would they suggest a better term would be for the best bid/best ask for the 16 exchanges that you can't trade through? Here is a NASDAQ Trader Document that refers to the Option NBBO 23 times. https://www.nasdaqtrader.com/content/ProductsServices/Trading/OptionsMarket/options_market_faqs.pdf. NBBO is the National Best Bid Offer and BBO is a reference to the Best Bid Offer for any one exchange.

congrats said:
Talked to IB tech. representative. He mentioned that Level-2 NBBO is only for securities and not for options.
More...
 
Robert Morse said:
This is what the Option Level 2 looked like at EOD for AAPL Feb 21, 2020 322.50 Call on Lightspeed Trader. 0.59x0.63 10x3 is the NBBO

View attachment 219932
More...
This is a neat set up....Bid-Mid-Ask-Volatility%.

I don't see/find volatility column IB's TWS platform.
Anybody know how to add Volatility column in Option Trader within TWS? Thanks in advance.
 
Last edited:
Robert Morse said:
This is what the Option Level 2 looked like at EOD for AAPL Feb 21, 2020 322.50 Call on Lightspeed Trader. 0.59x0.63 10x3 is the NBBO

View attachment 219932
More...
This is a neat set up....Bid-Mid-Ask-Volatility%. Thank you for sharing Robert.
What is Volatility representing in this option chain? Is it Implied Volatility or Historical Volatility? Or something else...
Thanks in advance.
 
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