Friday, October 8, 2010

Data News #2010 - 25
NASDAQ OMX Offers New Non-Professional Enterprise License for NASDAQ Depth Data

Why is NASDAQ OMX adding this new enterprise license?

NASDAQ OMX has decided to make its full market depth information, as well as net order imbalance data for the NASDAQ crosses, available to individual investors. To that end, NASDAQ OMX is adding a new NASDAQ depth data enterprise license option for non-professional traders receiving data via broker-dealers. 

The NASDAQ depth data enterprise license option for non-professional users is available only to broker-dealers registered under the Securities Exchange Act of 1934. Under the pilot program, NASDAQ OMX will cap the monthly non-professional usage fees for NASDAQ TotalView, NASDAQ OpenView and NASDAQ Level 2/NQDS at $325,000 per month for participating broker-dealers.

What data sets are covered by the NASDAQ depth data enterprise license?

Under the new NASDAQ non-professional depth data enterprise license program, broker-dealer firms may opt to pay a single monthly fee of $325,000 per month. For this fee, the broker-dealer will be allowed to provide real-time access to NASDAQ TotalView, NASDAQ OpenView and/or NASDAQ Level 2 data to all of its non-professional users. 

Please note that the new license covers non-professional users of NASDAQ depth data entitlements only. Firms must continue to report and pay the applicable usage fees for professional users of its NASDAQ depth products as well as non-professional and professional users accessing UTP Level 1 data. In addition, firms must also continue to pay the applicable NASDAQ depth distributor fees.

How does the new NASDAQ non-professional depth data enterprise license vary from existing enterprise license options?

As outlined on the NASDAQ OMX Data Products Price List, NASDAQ OMX offers multiple enterprise license options for its proprietary data products. The enterprise licenses cover different data sets and different customer profiles. 

The new NASDAQ non-professional depth data enterprise license most closely resembles the TotalView non-professional enterprise license. While both licenses cover non-professional users, the new program is different in that it covers all NASDAQ depth data provided to non-professional traders by the broker-dealer community. In contrast, firms participating in the existing TotalView enterprise license program are required to pay $9 per month for NASDAQ Level 2/NQDS usage for each non-professional user. Since NASDAQ Level 2 / NQDS data is covered under the new NASDAQ non-professional depth data entitlement, customers no longer have to pay the per user fee for this new optional program. 

Broker-dealers are encouraged to contact their NASDAQ OMX Global Data Products Account Manager to discuss which NASDAQ enterprise license option is best suited to its business needs.

When will NASDAQ OMX introduce the new enterprise license option?

NASDAQ OMX will offer the NASDAQ non-professional depth data enterprise license option to broker-dealer firms beginning with the billing month of October 2010. The program has been filed with the Securities and Exchange Commission (SEC) as a pilot program.

How can I enroll in the NASDAQ Depth Data Enterprise License?

As noted above, the new NASDAQ non-professional depth data enterprise license is available to broker-dealers firms only. 

For firms already participating in the NASDAQ TotalView enterprise license program, NASDAQ OMX will automatically cap NASDAQ depth fees for non-professional users at $325,000 per month beginning with the billing month of October 2010. 

To enroll in the program, contact your NASDAQ OMX Global Data Products Account Manager .

Where can I find additional information?

• Contact NASDAQ OMX Global Data Products at +1 301 978 5307.