Derivatives Reference Data: Best Derivatives Reference Datasets & Databases

What is Derivatives Reference Data?

Derivatives reference data is a compilation of available derivatives contracts in the stock market. A derivatives contract is an agreement between parties about the derived value of financial assets, index, or security without actually giving ownership to the contract buyer. A derivative is used by investors to speculate a financial instrument’s future price and used to hedge other instruments. Derivatives reference data indicates the derivative’s price based on the underlying assets and determines the underlying security attached to the contract. 

How is Derivatives Reference Data collected?

Derivatives reference data is collected from different sources. These sources include the stock market, securities and exchange commissions, brokerage firms, online trading platforms, and financial news. These sources have different methods of collecting data. They get raw data from websites, online media, charts, statistics, financial information, traders, and expert opinions. Furthermore, the collected raw data is now analyzed, organized, and undergoes data filtering to derive useful and up-to-date derivatives reference data. This data is used to optimize trading portfolios.   

What are the typical attributes of Derivatives Reference Data?

Derivatives reference data has many attributes. Here are some of the most common:
Derivative contracts: refers to the reference of the agreed price of an underlying asset. These assets include equity securities, commodities, and options.   
Derivative trading value: refers to the value of derivatives from the start and end of day trading activities.
Financial ratios: refers to the analysis of the performance of a financial instrument.
 

What is Derivatives Reference Data used for?

Derivatives reference data is used to analyze and identify any specific derivative contracts in the market. The data is also used to speculate future prices and hedge risk, and it helps stabilize the economy and manage risk when used wisely. Investors and traders may use this data to speculate a high rise in a specific commodity price. This data can hedge risk by making contracts of a volatile commodities’ price into a fixed price. Traders also used this data to optimize their trading portfolios.

How can a user assess the quality of Derivatives Reference Data?

A high-quality derivatives reference dataset must have the following characteristics:
  • Accuracy of data: refers to relevant data that is up-to-date, clean, and updated regularly. The data must be free from any errors and be organized systematically.
• Consistent: refers to the consistency level of the providers. How often they update and clean their data? Is the source consistent when it comes to giving precise information?
• Authentic: refers to facts and reliable data. Derivative reference data must be dependable.

When buying datasets from data providers, make sure to read reviews, and ask for sample data to determine if it suits your business needs. 

Where can I buy Derivatives Reference Data?

Data providers and vendors listed on Datarade sell Derivatives Reference Data products and samples. Popular Derivatives Reference Data products and datasets available on our platform are EDI Derivatives Reference Data (>30 fields covered) by Exchange Data International.

How can I get Derivatives Reference Data?

You can get Derivatives Reference Data via a range of delivery methods - the right one for you depends on your use case. For example, historical Derivatives Reference Data is usually available to download in bulk and delivered using an S3 bucket. On the other hand, if your use case is time-critical, you can buy real-time Derivatives Reference Data APIs, feeds and streams to download the most up-to-date intelligence.