Tuesday, October 02, 2012
Data News #2012 - 19
NASDAQ OMX Will Modify the Mutual Fund Dissemination Service External Distributor Fee Structure, Effective January 1, 2013
- The NASDAQ Stock Market
- Mutual Fund Dissemination Service (MFDS)
- NASDAQ OMX Global Data Products at +1 301 978 5307 or + 45 33 93 33 66
What you need to know:
- Effective January 1, 2013, NASDAQ OMX® will offer a tiered external distributor fee model for the Mutual Fund Dissemination ServiceSM (MFDSSM) product.
- To simplify distributor reporting and administration, NASDAQ OMX will use the same usage-based tier structure for MFDS as currently employed for the Global Index Data ServiceSM (GIDSSM).
What is changing?
Effective January 1, 2013, NASDAQ OMX will offer a tiered external distributor fee model for the MFDS product. The new MFDS Distributor Fee structure for external distribution will be as follows:
MFDS usage tiers are aligned to the NASDAQ OMX Global Index Data Service (GIDS) for easier administration for distributors.
What data does MFDS provide?
MFDS collects and distributes daily price and distribution data for more than 29,500 mutual funds, money market funds, unit investment trusts (UITs), structured products and variable annuities. This represents an 11% increase over the last three years. For the complete data description, please refer to the MFDS data feed specification document.
NASDAQ OMX has continually worked on enhancing the MFDS product by improving the content and delivery methods. NASDAQ has implemented several large releases over the last three years and anticipates more enhancements next year.
Who is subject to the MFDS Distributor Fee?
All firms that receive MFDS data on a datafeed and distribute the MFDS daily price data before 12:00 a.m., Eastern Time (ET), the next business day to external customers are subject to the MFDS Distributor Fee. For purposes of this notice, these firms are referred to as MFDS Distributors.
Please note that firms distributing data to less than 500 subscribers will not be impacted by this change.
Will NASDAQ OMX make content changes to MFDS in 2013?
NASDAQ OMX is currently in discussions to add Alternative Investment Products (AIPs), such as non-listed Real Estate Investment Trusts (REITs), to the MFQS / MFDS products in early 2013. NASDAQ OMX also plans to add new MFQS website functionality for the market data community in mid- to late-2013.
Is NASDAQ OMX implementing a usage reporting requirement for MFDS data?
Yes, NASDAQ OMX will require MFDS Distributors to submit usage reports indicating the number of subscribers accessing same-day data (all subscribers accessing data before 12:00 a.m., ET, the next business day. Each MFDS Distributor must submit a usage report via the NASDAQ Online Reporting Application (NORA) or by sending an email with the number of MFDS subscribers to NASDAQ OMX Global Data Products by no later than February 15, 2013.
Would my organization be subject to the MFDS Distributor Fee if fund price data is only provided on a T+1 basis?
No. Firms providing MFDS data only on a T+1 basis are not subject to the MFDS external distributor fee.
Please note that firms must delay all MFDS data from redistribution to third party users until 12:00 a.m., ET, the next business day to meet the delay standard and avoid MFDS fees liability.
For example, a firm receiving MFDS data today, Tuesday, October 2, 2012, must delay distribution of that data until 12:00 a.m. ET on Wednesday, October 3, 2012.
Would I be subject to the MFDS Distributor Fee if I only provide data to internal users?
No. NASDAQ OMX will only charge the MFDS Distributor Fee to firms that receive the MFDS data on a datafeed and provide data in any format to third party data users. If your firm’s distribution is limited to internal users only, the MFDS Distributor Fee is not applicable at this time.
Will NASDAQ OMX modify the MFDS Direct Access Fee or MFDS Hosted Solution Fees?
No. At this time, NASDAQ OMX will continue to assess the direct access fee of $500 per month to firms that process the MFDS data feed directly from NASDAQ OMX via a direct network connection or authorized extranet connectivity provider. The MFDS hosted solution fee structure remains as outlined on the NASDAQ OMX Global Data Products – U.S. Pricing page on the NASDAQ OMX Trader® website.
Where can I find additional information?
- Refer to the NASDAQ OMX Global Data Products Pricing page on NASDAQ OMX Trader.
- Contact NASDAQ OMX Global Data Products at +1 301 978 5307 or + 45 33 93 33 66.
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About the NASDAQ OMX Group: The NASDAQ OMX Group, Inc. is the world's largest exchange company. It delivers trading, exchange technology and public company services across six continents, with more than 3,600 listed companies. NASDAQ OMX offers multiple capital raising solutions to companies around the globe, including its U.S. listings market, NASDAQ OMX Nordic, NASDAQ OMX Baltic, NASDAQ OMX First North, and the U.S. 144A sector. The company offers trading across multiple asset classes including equities, derivatives, debt, commodities, structured products and exchange-traded funds. NASDAQ OMX technology supports the operations of over 70 exchanges, clearing organizations and central securities depositories in more than 50 countries. NASDAQ OMX Nordic and NASDAQ OMX Baltic are not legal entities but describe the common offering from NASDAQ OMX exchanges in Helsinki, Copenhagen, Stockholm, Iceland, Tallinn, Riga, and Vilnius. For more information about NASDAQ OMX, visit www.nasdaqomx.com.