Thursday, March 29, 2012

Data News #2012 - 5
NASDAQ OMX Reminder Regarding Enhanced Display Solution Pricing for NASDAQ Depth Data and Clarification on other Distribution Models

What is changing?

As announced in Data News #2012-1, effective April 2, 2012, NASDAQ OMX® will introduce a new, optional price structure for NASDAQ® Depth data called Enhanced Display Solution. As a reminder, all Application Programming Interfaces ("APIs") and similar distribution mechanisms that contain NASDAQ Depth data must be classified as a Retransmission Datafeed, Managed Data Solution or Enhanced Display Solution effective April 2, 2012.

Enhanced Display Solutions and Managed Data Solutions are currently only offered for NASDAQ Depth data in the U.S. and do not apply to other U.S. data products, including UTP Level 1 Service. Note that prior to April 2, 2012, distribution models that offered U.S. NASDAQ Depth data via a controlled display product that also included an Application Programming Interface ("API") or similar solution was not charged at the higher Retransmission Datafeed or Managed Data Solution fee schedules. After April 2, 2012, Distributors are required to treat such usage accordingly by reporting such usage as a Retransmission Datafeed or Managed Data Solution or Enhanced Display Solution.

What is an Enhanced Display Solution?

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 access to data via an API or similar solution. Similar to the Managed Data Solution, this new policy, Enhanced Display Solution, will offer more administrative flexibility for the receipt and distribution of NASDAQ Depth data, including simplifying market data administration for Distributors.

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

Why is NASDAQ OMX implementing this offering?

NASDAQ OMX has gathered feedback from market data Distributors that intend to offer integrated data and entitlement solutions for NASDAQ Depth data. 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 to provide 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.

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

The Subscriber to an Enhanced Display Solution may use the NASDAQ Depth data 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 a Retransmission 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.

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 fees to be paid by Distributors offering an Enhanced Display Solution are as follows:

What additional fees are Enhanced Display Solution Subscribers liable for?

Distributors opting for an Enhanced Display Solution are 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 that each such Subscriber will be charged at the appropriate NASDAQ TotalView and NASDAQ OpenView Subscriber rates.

Enhanced Display Solutions were 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:

• NASDAQ OMX Global Data Agreement - Required for all firms, prior to initiation of the first NASDAQ OMX data service only.
• System Application - Required for all distributors of Enhanced Display Solutions.
• Subscribers to Enhanced Display Solutions are not required to submit documentation at this time.

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 data in its own messaging formats (rather than its raw NASDAQ OMX message formats) by reformatting, redisplaying and/or altering the Nasdaq Depth data prior to retransmission, but not to affect the integrity of the NASDAQ Depth data and not to render it inaccurate, unfair, uninformative, fictitious, misleading or discriminatory.
• Report the number of 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?

NASDAQ OMX will initially limit the Enhanced Display Solutions program to U.S. NASDAQ Depth data. NASDAQ OMX will evaluate its next steps once the Enhanced Display Solution program launches.

What other distribution models does NASDAQ OMX offer?

NASDAQ OMX offers the following distribution models for NASDAQ Depth data:

Retransmission Datafeeds (Uncontrolled Product):
A Retransmission Datafeed is defined by NASDAQ OMX as any uncontrolled retransmission of NASDAQ OMX data. Any firm receiving a Retransmission Datafeed (Recipient) is recognized as a Distributor at NASDAQ OMX. NASDAQ OMX considers the distribution to be an Uncontrolled Product if the Distributor does not control both the entitlements and the display of the data.

Managed Data Solution (Uncontrolled Product):
As noted in Data News Item #2010-28, NASDAQ OMX introduced a new U.S. NASDAQ Depth Fee structure for distributors Managed Data Solutions, which is defined by NASDAQ OMX as any product containing NASDAQ OMX data whereby a Distributor controls the entitlements, but may not control the display of the Information. The Distributor must only offer NASDAQ OMX Depth Data in its own messaging formats (rather than its raw NASDAQ OMX message formats).

Controlled Device/Access/Subscriber (Controlled Product):
A Controlled Device/Access is a type of Controlled Product that contains NASDAQ OMX Information where the Distributor controls both the entitlements and the display of the Information.

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?

• Refer to the NASDAQ OMX Global Data Products Operations page.
• Contact NASDAQ OMX Global Data Products at 1 301 978 5307 #3 or +45 339 333 66.