How does NASDAQ OMX define “Subscribers?" What is the relevant Unit of Count?

“Subscriber” is defined as a computer terminal or an automated service which is entitled to receive Information. NASDAQ OMX also uses the terms “Interrogation Device” or "Device” or “Access”. Distributors may count the following for usage reporting:

• Number of physical devices [“Interrogation Devices” or “Device”]
• Number of Unique User IDs and Password combinations that are not shared by multiple people, and cannot simultaneously log-on to multiple devices [“Accesses”]

Distributors are to report the total number of Subscribers with the potential to access the Information, unless the Distributor is able to technically track actual usage for each Subscriber.

For the purposes of reporting fee liable Non-Display Usage, NASDAQ OMX continues to require firms to report the greater of a) the number of Subscribers that can modify the application in real-time, or b) the number of Devices [usually servers] that receive and benefit from the information.

How does NASDAQ OMX define Non-Display Usage?

Non-Display Usage means any method of accessing NASDAQ Depth data that involves access or use by a machine or automated device without access or use of a display by a natural person or persons. The burden is on the Distributor to ensure that a particular recipient that benefits from the Information can be counted for usage reporting, regardless of whether that Information is displayed.

Note: Devices [or servers] used in the transportation, dissemination or aggregation of data (distribution) are not necessarily fee liable, but the Distributor should be able to identify such Devices that exist within the market data infrastructure and identify how many Devices are used for distribution separate and apart from the Devices that are used for the reasons listed below.

Examples of Non-Display Usage include but are not limited to:

• operations control programs
• program trading
• investment analysis
• order verification
• surveillance programs
• risk management
• order-routing activities
• automated order generation and/or order pegging
• price referencing for algorithmic trading
• price referencing for smart order routing

If firms are unsure about a specific use case of servers processing data, please submit your use case for review by NASDAQ OMX for determination at any time.

Note, the Non-Display fee structure may vary depending upon the NASDAQ OMX data product, but the Non-Display Policy and Unit of Count are consistent across ALL NASDAQ OMX data products.

Please refer to the NASDAQ OMX Global Data Policies for more information on Unit of Count and Non-Display Usage.

Is there any change in how my organization will report “Subscribers?"

Some firms that receive the information from both direct and indirect sources will now be required to report the usage under separate report titles. In addition, firms that previously paid the cap at $30,000 per month are now required to report indirectly sourced usage as Subscribers at $76 or $36 per month. The new capped fee of $75,000 per month only applies to usage from directly sourced Information or when a Subscriber has both directly and indirectly sourced data.

For the purposes of reporting fee liable Non-Display Usage, NASDAQ OMX continues to require firms to report either a) the number of Subscribers that can modify the application in real-time, or b) the number of Subscribers [Devices/servers] that receive and benefit from the information.

How does my firm report usage if a single Subscriber has both Display and Non-Display usage?

In this instance, please report the Subscriber as a Non-Display Subscriber. Please contact your NASDAQ OMX Account Manager if you are unsure whether a Subscriber has both Display and Non-Display usage.

How does my firm determine if the Direct Access or Indirect Access fees apply?

As a reminder, "Direct Access" is defined as a telecommunications interface for receiving NASDAQ data, receiving a NASDAQ datafeed within the NASDAQ co-location facility, or receiving NASDAQ data via an Extranet access provider. For details on the definition of Direct Access, please see NASDAQ Data News Item #2010 - 34.

If my firm has both Direct Access and Indirect Access datafeeds, how would my organization submit usage reporting for Subscribers?

In this instance, please report the Subscribers as follows:

Do Non-Display fees apply if my firm uses servers to distribute the data to display-only Subscribers and/or datafeed customers?

No, the use of the Information on a Device or server that is solely receiving the data to transmit or distribute the Information to display Subscribers and/or datafeed Subscribers is not liable for Non-Display usage.

Where can I find additional information?

• Refer to the NASDAQ TotalView product page or NASDAQ OMX pricing page on the NASDAQ OMX Trader^® website.
• Please contact NASDAQ OMX Global Data Products at +1 301 978 5307, #4 or +45 339 333 66.