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Friday, October 15, 2010

Data News #2010 - 27
NASDAQ OMX Introduces Penalty for Late or Incomplete/Inaccurate Detailed Usage Reporting

Markets Impacted:

  • ALL

Contact Information:

What you need to know:

  • As of January 1, 2011, NASDAQ OMX® is introducing a penalty fee for external distributors that provide late or clearly incomplete or inaccurate detailed usage reports.
  • Per the NASDAQ OMX Global Data Policies, all external distributors are required to submit detailed usage reports. The new penalty only applies to the following:
    • External Distributors that provide NASDAQ OMX market data to more than 3,000 external professional subscribers.
      OR
    • Datafeed Distributors that provide real-time and delayed NASDAQ OMX market data to datafeed recipients.
  • NASDAQ OMX will make its best effort to send email notifications to firms in jeopardy of being assessed this new fee.
 

What is the current policy for detailed usage reporting?

Distributors that externally distribute market data are required to submit monthly detailed usage reports to NASDAQ OMX via CSV or VRXLS (Microsoft Excel) formats. An external distributor is a firm that receives a delayed or real-time NASDAQ OMX data feed and distributes the data externally to third-party users.

How can my firm submit detailed usage reporting?

The standard formats for submission of these detailed usage reports can be found in the NASDAQ OMX Global Data Policies. The following links contain detailed usage report submission information:

What is the current Usage Reporting Policy for External Distributors?

Within 15 days of the end of each service month, external distributors are required to submit a detailed usage report to NASDAQ OMX. The detailed report must provide the name, address, professional or non-professional status and service level of each user/device that has the ability to access real-time NASDAQ OMX market data during the month. To ensure that distributors provide timely, complete and detailed usage reporting to NASDAQ OMX, penalties will be assessed for late or clearly incomplete or inaccurate reporting.

What is the new penalty fee?

Monthly detailed usage reporting that is not provided within 60 days of the original deadline will be subject to a penalty of $5,000. NASDAQ OMX will invoice the penalty on the distributor2019s subsequent invoice, and such penalties will be billed each month until correct and complete reporting for that particular month is received.

The following chart outlines the penalties for Detailed Usage Reports using examples:

Original Detailed Usage Reporting - Due Date Late or Clearly Incomplete/Inaccurate Detailed Usage Reporting - Penalty
Monthly Detailed Usage Reporting is due by the 15th day of the month following service.



Example: April service month detailed usage reporting is due May 15th.		 Monthly Detailed Usage Reporting that is not provided within 60 days after the Original Due Date will be subject to a penalty of $5,000 per month; this penalty will be assessed in each subsequent month that the detailed usage reporting is not received.

Example: April service month detailed usage reporting is due May 15th, and is considered late on July 15. NASDAQ OMX will invoice $5,000 as of July 15th, and will continue to invoice $5,000 per month until the accurate usage reporting is received.

Where can I find additional information?

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