Consolidated Tape: What It Is and How It Works

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James Chen
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James Chen, CMT is an expert trader, investment adviser, and global market strategist.

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Updated January 10, 2024
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What Is Consolidated Tape?

Consolidated tape is an electronic system that collects and reports real-time data of stocks that are traded on an exchange. The information collected for the consolidated tape includes prices and trading volume. Data is compiled from various sources, including exchanges, alternative systems, and broker-dealers. Investors and market watchers can use the consolidated tape to make buy-and-sell decisions.

Key Takeaways

  • Consolidated tape is an electronic system that collates real-time exchange-listed data, such as price and volume, and disseminates it to investors.
  • Various major exchanges, including the NYSE, the NASDAQ, and the CBOE, report trades and quotes through consolidated tape.
  • Consolidated tape entries display ticker symbols, trading volume, the price per share for each trade, and the current price compared to the previous day's close.
  • Consolidated tape is overseen by the Consolidated Tape Association.

How Consolidated Tape Works

Consolidated tape provides continuous, real-time data generated by various market centers, including stock exchanges, electronic communications networks (ECNs), and third-market broker-dealers. Major exchanges, including the New York Stock Exchange (NYSE), the NASDAQ, and the Chicago Board Options Exchange (CBOE), report trades and quotes. Reports include trading activity on primary and other exchanges, as securities often trade on more than one exchange.

The tape is overseen by the Consolidated Tape Association. Its listed securities data comes from two networks: network A, which reports trades for securities listed on the NYSE, and network B, which reports trades from NYSE Amex, Bats, ECNs, and regional exchanges.

The consolidated tape contains valuable information for market watchers, including asset names and trading volume. The data is also transmitted to financial websites, by brokers and investment firms, and through financial media. Investors can track overall market sentiment by keeping an eye on the consolidated tape. This data also helps technical analysts evaluate stock behavior as they chart the incoming data over time.

Information on the Consolidated Tape

Each entry on the consolidated tape displays important information for investors and other market watchers. The table below highlights the data found on the consolidated tape:

Ticker symbol  Identifies the company or asset traded 
Trading volume Indicates the number of shares traded
Price for share  For each trade
Triangle  Points up or down (shows whether the price per share is above or below the previous day's closing price)
Additional number Shows how much higher or lower the trade’s price was compared to the last closing price

The colors on the consolidated tape indicate movement in a stock's price relative to the last closing price. For instance:

  • Green indicates a higher trading price
  • Red indicates a lower trading price
  • Blue and white indicate no change

Stock or ticker symbols on the consolidated tape may be followed by a dot and another letter. These indicate specific types of assets. For instance, if a ticker symbol is followed by .A, it denotes class A shares while .G indicates a first convertible bond.

History of Consolidated Tape

Consolidated tape is sometimes referred to as ticker tape. Stock information was first delivered through telegraph lines. This mechanical machine printed long strips of paper with stock quotes and emitted a ticking sound—hence the name ticker tape. These tapes gave way to electronic transmissions in the 1960s. It wasn't until 1976 that the consolidated tape was introduced. It is now fully digital.

The first telegraphic ticker tape was created by Edward Calahan in 1867. Inventor Thomas Edison modified this by improving on its original design and patented it in 1869. During the late 19th century, most brokers who traded at the NYSE had offices located nearby to ensure they received a steady supply of the tape and the most recent transaction figures of stocks.

Messengers, also called pad shovers, delivered these quotes by running a circuit between the trading floor and brokers' offices. The shorter the distance between the trading floor and the brokerage, the more up-to-date the quotes were.

Is Consolidated Tape the Same As Ticker Tape?

The terms consolidated and ticker tape are often used interchangeably. But ticker tape is an outdated version of consolidated tape. Consolidated tape is a digital transmission of financial assets (notably stocks) that are traded on exchanges. It collects and reports data, including ticker symbols, prices, trading volume, and other details. Ticker tape collected the same data, which was transmitted mechanically on long strips of paper. Its use was phased out and replaced by the digital consolidated tape.

Does Consolidated Tape Only Report Stock Information?

Consolidated tape is primarily associated with the transmission of stock information. But it also reports information about other financial assets that are traded on exchanges, including exchange-traded funds (ETFs), bonds, and American depositary receipts (ADRs).

What Do the Letters After Ticker Symbols Mean on the Consolidated Tape?

Ticker symbols may be followed by a dot and a letter on the consolidated tape. For instance:

  • .A = class A shares
  • .D = new issue
  • .G = first convertible bond
  • .P = preferred shares
  • .R = rights
  • .U = units
  • .W = warrants

The Bottom Line

The consolidated tape provides investors and other market watchers with real-time information about securities that are traded on exchanges. As an investor, it's important to know how to read it. It includes important information identifying traded securities, trading volume, and the price per share or unit, among others. Knowing this information can help you make more informed decisions about whether to buy, sell, or hold your stocks, bonds, and other tradable securities.

Article Sources
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  1. NYSE. "Consolidated Tape."

  2. Consolidated Tape Association. "Overview."

  3. National Archives. "Consolidated Tape Association; Notice of Filing of the Thirty-Seventh Substantive Amendment to the Second Restatement of the CTA Plan and Twenty-Eighth Substantive Amendment to the Restated CQ Plan."

  4. Rutgers School of Arts and Sciences, Thomas A. Edison Papers. "Inventions. Stock Ticker."

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