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Friday, July 30, 2010

Data News #2010 - 16
NASDAQ OMX Announces NQDS Depth Distributor Fee for NASDAQ-Listed Securities Effective September 1, 2010

Markets Impacted:

  • The NASDAQ Stock Market

Products Impacted:

  • NASDAQ Level 2

Contact Information:

What you need to know:

  • Effective September 1, 2010, pending Securities and Exchange Commission (SEC) approval, NASDAQ OMX® will apply the monthly Depth Distributor Fee to those firms that subscribe to the NASDAQ Quotation Dissemination ServiceSM (NQDSSM) entitlement which represents the NASDAQ-listed security portion of the NASDAQ Level 2SM data feed.
  • The NASDAQ-listed security portion of the NASDAQ Level 2 data feed will be harmonized with other NASDAQ OMX depth products including NASDAQ TotalView®, our premier depth product for the trading of all U.S. equities on The NASDAQ Stock Market® (NASDAQ®).
 

What is the NASDAQ Level 2 product?

NASDAQ Level 2 is a data feed that provides the top-of-file position in all U.S equities traded on NASDAQ for NASDAQ exchange participants. While NASDAQ Level 2 has since been surpassed by NASDAQ TotalView with respect to market liquidity, Level 2 still offers insight into NASDAQ market participant trading strategies including the following benefits and features:

  • Helps NASDAQ market participants track their quotation positions and comply with SEC and NASDAQ marketplace rules
  • Provides investors and traders with a bird's-eye view into NASDAQ market participants' quotation activity and market momentum

What is changing?

In order to harmonize distributor fees across NASDAQ OMX depth products and to cover the increasing costs of maintaining the legacy Level 2 data feed, NASDAQ OMX will introduce a monthly Depth Distributor Fee for those firms that subscribe to the NQDS entitlement, which represents the NASDAQ-listed security portion of the NASDAQ Level 2 data feed. These fees are equivalent to the current NASDAQ-listed security portion of the NASDAQ TotalView distributor fees and will be as follows:

Entitlement Name Security Coverage Monthly Fee
Distributor Fees
NASDAQ Level 2		 NASDAQ issues Internal Distribution: $1,000 per firm
External Distribution: $2,500 per firm
Direct Access: $2,000 per firm

For the full U.S. product price list click here.

When will the entitlement fee change take effect?

Effective September 1, 2010, customers that subscribe to the NASDAQ-listed security portion of the NASDAQ Level 2 data feed will see a monthly Depth Distributor Fee charge on their September invoice.

Who is impacted by the new Depth Distributor Fee?

Customers that receive NASDAQ depth data via NASDAQ Level 2, who do not already incur the fee from receiving the data via NASDAQ TotalView, will be assessed the new monthly Depth Distributor Fee effective September 1, 2010. However, customers that subscribe to both NASDAQ TotalView and NASDAQ Level 2 will be assessed only one Depth Distributor Fee.

Where can I find additional information?

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Nasdaq (Nasdaq: NDAQ) is a leading global provider of trading, clearing, exchange technology, listing, information and public company services. Through its diverse portfolio of solutions, Nasdaq enables customers to plan, optimize and execute their business vision with confidence, using proven technologies that provide transparency and insight for navigating today's global capital markets. As the creator of the world's first electronic stock market, its technology powers more than 90 marketplaces in 50 countries, and 1 in 10 of the world's securities transactions. Nasdaq is home to approximately 3,900 total listings with a market value of approximately $13 trillion. To learn more, visit: business.nasdaq.com.

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