Understand Reference Data Center Pricing Key Terms

The following table lists definitions for key terms in Reference Data Center (RDC) Pricing.

Term	Definition

Term	Definition
Ask Price	The price a seller is willing to accept for a security, also known as the offer price. Along with the price, the ask quote will generally also stipulate the amount of the security willing to be sold at that price.
Bid Price	The price a buyer is willing to pay for a security. This is one part of the bid with the other being the bid size, which details the amount of shares the investor is willing to purchase at the bid price. The opposite of the bid is the ask price, which is the price a seller is looking to get for his or her shares.
Close Price	The amount a stock is worth at the close of the stock exchange for that day.
Mid Price	The mid price is the price between the best price of the sellers of the stock or commodity offer price or ask price and the best price of the buyers of the stock or commodity bid price. it can simply be defined as the average of the current bid and ask prices being quoted.
Current Price	The "real time" price of a security trading on an exchange.
Last Traded Price	The last traded price is the last closing price. Usually the last price a security was traded for.
Price Level	The average of current prices across the entire spectrum of goods and services produced in the economy. In a more general sense, price level refers to any static picture of the price of a given good, service or tradable security. Price levels may be given in small ranges, such as with securities prices or presented as a discrete value. The most common price level index is the Consumer Price Index (CPI).
Foreign Exchange Rate	Rate at which one currency may be converted into another. Also called rate of exchange or foreign exchange rate or currency exchange rate.
Original Source	Vendor level data such as Bloomberg or IDC.
Target Source	Data resulting from the Best of Breed process and assigned to entities for valuations.
Best Price	The single price used by the Target Source for portfolio valuations; the Best of Breed. Best prices are ultimately stored in the PRICE table in the SECURITY database in the data warehouse.
Demand	Securities to be requested from each unique vendor; determined by the combination of Price and Hierarchy Rules.
Price Rule	Determines which prices are demanded from vendors based on security and/or holdings criteria and also used to calculate prices after validation. Price Rules also are associated with a Source Hierarchy Rule and help value portfolios.
Source Hierarchy Rule	Defies where prices will be requested and which prices will be assigned to the Target Source by order of precedence.
Validation Rule	Custom testing of prices to ensure data integrity based on security attributes; only prices that pass validations are committed to the database. Validation Rules verify the integrity of Original Source Data and are defined by Security Criteria. Validation Types are the specific tests to be performed on each field and help determine the Best Price Final Status.
Fair Value	Process that allows for price adjustments after a Best Price is determined, but before valuations, to account for foreign market movements after the local market close.