Wednesday, January 04, 2012

Data News #2012 - 1
NASDAQ OMX Introduces Enhanced Display Solution Pricing for NASDAQ Depth Information

Markets Impacted:

  • The NASDAQ Stock Market

Products Impacted:

  • NASDAQ TotalView
  • NASDAQ Level 2
  • NASDAQ OpenView

Contact Information:

What you need to know:

  • Effective April 2, 2012, NASDAQ OMX® will introduce a new, optional price structure for NASDAQ® Depth Information called Enhanced Display Solution.
  • The Enhanced Display Solution price structure is intended to provide a new option for Distributors who offer a controlled display product that also includes an Application Programming Interface ("API") or similar solution for clients or Subscribers.
  • The Enhanced Display Solution will only be offered by Distributors to external Subscribers who are using the NASDAQ Depth Information internally.
  • Non-display use is not permitted under the Enhanced Display Solution.

What is changing?

In response to industry demand and changes in the technical distribution of market data, NASDAQ OMX is adopting a new fee schedule for Distributors offering NASDAQ Depth data on a controlled display product that also allows raw access via an API or similar solution. This new policy, Enhanced Display Solution, will offer more administrative flexibility for the receipt and distribution of NASDAQ Depth Information. The Enhanced Display Solution will be offered starting April 2012.

What is an Enhanced Display Solution?

NASDAQ OMX is establishing the Enhanced Display Solution to simplify market data administration for Distributors. This is a new pricing option for firms providing a controlled display product containing NASDAQ Depth Information, where the Distributor controls the display and allows the Subscriber to access an API or similar solution from that display product.

Until now, all API products were considered datafeeds or Managed Data Solutions by NASDAQ OMX. NASDAQ OMX has become aware that some Distributors are treating display APIs as controlled products. The Enhanced Display Solution is intended to provide additional flexibility and clarity on distribution models while also ensuring fairness.

How can a Subscriber of an Enhanced Display Solution use NASDAQ Depth Information?

The Subscriber of an Enhanced Display Solution may use the NASDAQ Depth Information for the Subscriber's own purposes and may not redistribute the Information outside of their organization, externally, or even internally to other Subscribers in the same organization. Any Subscribers distributing the information further, such as posting the Information on a shared drive or delivering the Information into another system is prohibited under an Enhanced Display Solution; such use would be considered an uncontrolled datafeed. In addition, Non-Display use is not permitted under an Enhanced Display Solution. Distributors are obligated to monitor for both non-display and excessive use to ensure compliance.

Why is NASDAQ OMX implementing this offering?

NASDAQ OMX is working with a number of market data Distributors looking to offer integrated data and entitlement solutions for NASDAQ Depth Information. Through this new policy and pricing, NASDAQ OMX is simplifying the administration process for Distributors taking advantage of an Enhanced Display Solution.

NASDAQ OMX will continue to strive toward providing the full range of product choices demanded by our global Subscriber base. Feedback is extremely valuable and will always be carefully considered when reviewing future initiatives.

What are the new fees for Enhanced Display Solution?

As of April 2, 2012, pending Securities and Exchange Commission (SEC) approval, NASDAQ OMX will offer Enhanced Display Solution pricing for the following NASDAQ OMX data products:

  • NASDAQ TotalView®
  • NASDAQ Level 2
  • NASDAQ OpenView

The fee to be paid by Distributors offering Enhanced Display Solution will be as follows:

Number of Downstream Subscribers
Monthly Enhanced Display Solution Fee
per Distributor for right to display products
containing API or similar solution

1-299 Subscribers = $2,000/month
300-399 Subscribers = $3,000/month
400-499 Subscribers = $4,000/month
500-599 Subscribers = $5,000/month
600-699 Subscribers = $6,000/month
700-799 Subscribers = $7,000/month
800-899 Subscribers = $8,000/month
900-999 Subscribers = $9,000/month
1,000 Subscribers or more = $10,000/month
a)Distributors opting for an Enhanced Display Solution would, in addition, be fee liable for the applicable Professional or Non-Professional Subscriber fees for NASDAQ TotalView and NASDAQ OpenView.
b)Distributors that are subscribing to certain enterprise NASDAQ Depth Information capped fees may be exempt from this fee. Please contact your NASDAQ OMX Sales Representative for further assistance.

What additional fees are Enhanced Display Solution Subscribers liable for?

Distributors opting for an Enhanced Display Solution would be fee liable for the applicable Professional or Non-Professional Subscriber fees for NASDAQ TotalView and NASDAQ OpenView. NASDAQ Level 2 may be offered under the Enhanced Display Solution, but please note each such Subscriber will be charged at the appropriate NASDAQ TotalView and NASDAQ OpenView Subscriber rates.

Enhanced Display Solution was created to help NASDAQ Depth Subscribers receive data via a display product and not pay an increased fee for access to an attached API, Dynamic Data Exchange (DDE) or similar product.

How does my firm become an approved distributor of an Enhanced Display Solution?

To receive approval to offer an Enhanced Display Solution to Subscribers, Distributors must submit the appropriate documentation and receive prior approval from NASDAQ OMX:

What are my firm's obligations as a distributor of an Enhanced Display Solution?

Distributors offering an Enhanced Display Solution must:

  • Offer an integrated data solution with secured data transmissions, a robust entitlement system and monitor Subscribers for any non-display or excessive usage by Subscribers to ensure compliance.
  • Offer NASDAQ Depth Information in its own messaging formats (rather than its raw NASDAQ OMX message formats) by reformatting, redisplaying and/or altering the Nasdaq Depth Information prior to retransmission, but not to affect the integrity of the NASDAQ Depth Information and not to render it inaccurate, unfair, uninformative, fictitious, misleading or discriminatory.
  • Report Enhanced Display Solution Subscribers under new report titles in the online NASDAQ OMX Reporting Application for Summary Usage Reporting (NORA).
  • Include Enhanced Display Solutions Subscribers under new products codes in the Detailed Usage Reporting.
  • Assume the liability for any unauthorized use of NASDAQ OMX data by Enhanced Display Solution Subscribers.

Does NASDAQ OMX plan to offer Enhanced Display Solution pricing options for its other markets and products?

As noted above, NASDAQ OMX will initially limit the Enhanced Display Solutions program to NASDAQ Depth Information. NASDAQ OMX will evaluate its next steps once the Enhanced Display Solution program launches.

Where can I find additional pricing information?

The full price lists are accessible at the following link:

  • Refer to U.S. Data Products Fee Schedule.
  • Where can I find additional information?

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