Thursday, October 28, 2010

Data News #2010 - 28
NASDAQ OMX Introduces New NASDAQ Depth Fee Structure for Managed Data Solutions

Markets Impacted:

  • The NASDAQ Stock Market

Products Impacted:

  • NASDAQ TotalView
  • NASDAQ Level 2
  • NASDAQ OpenView

Contact Information:

What you need to know:


  • Effective January 1, 2011, NASDAQ OMX® will introduce a new, optional price structure for Managed Data Solutions.
  • The Managed Data Solutions program is available to market data distributors that assist in the management of data feed products on behalf of their clients by contractually restricting data flow and monitoring its data delivery.
  • Initially, NASDAQ will limit the Managed Data Solutions program to NASDAQ U.S. Depth data (NASDAQ TotalView, NASDAQ Level 2 and NASDAQ OpenView) products used by client organizations for internal use only.
 

What is changing?

In response to industry demand and changes in the technical distribution of market data, NASDAQ OMX is adopting a new, innovative fee schedule for Managed Data Solutions, which is now an option available for firms looking to simplify market data administration for their data feed clients.

NASDAQ OMX is establishing the Managed Data Solutions offering for distributors that assist in the management of data feed products by contractually restricting data flow and monitoring its delivery. Please note that Managed Data Solutions may only be offered by distributors to client organizations that are using the information internally.

Effective January 1, 2011, NASDAQ OMX will update its policy whereby a provider of a Managed Data Solution containing NASDAQ Depth data may report and pay on behalf of their Managed Data Solution clients.

What are Managed Data Solutions?

A Managed Data Solution is a new data delivery option now available to distributors of NASDAQ U.S. Depth information (NASDAQ TotalView, NASDAQ Level 2 and NASDAQ OpenView).

Under the Managed Data Solutions fee structure, distributors may now provide data feeds, Application Programming Interfaces (APIs) or similar automated delivery solutions to client organizations with only limited entitlement controls. The recipient of a Managed Data Solution may use the information for internal purposes only and may not distribute the information outside of their organization.

Why is NASDAQ OMX implementing the Managed Data Solutions offering?

NASDAQ OMX is working with a number of market data distributors looking to offer integrated data and entitlement solutions for its depth products. Through its new policy and pricing, NASDAQ OMX is simplifying the administration process for Managed Data Solution clients.

NASDAQ OMX will continue to strive toward providing the full range of product choices demanded by our global customer base. Feedback is extremely valuable and will always be carefully considered when reviewing future initiatives.

What are the new fees for Managed Data Solutions?

As of January 1, 2011, NASDAQ OMX will offer Managed Data Solutions pricing for the following NASDAQ OMX data products:

  • NASDAQ TotalView
  • NASDAQ Level 2
  • NASDAQ OpenView

The fees to be paid by distributors offering Managed Data Solutions will be as follows:

Fee schedule for Managed Data Solutions Monthly Fee
Managed Data Solutions License Fee
(For the right to offer Managed Data Solutions to clients)
$1,500 Per Distributor
NASDAQ Depth Data Professional Subscriber Fee
(Internal Use Only and includes TotalView, Level 2, OpenView)
$300 Per Subscriber
NASDAQ Depth Data Non-Professional Subscriber Fee
(Includes TotalView, Level 2, OpenView)
$60 Per Subscriber

At the subscriber/end user level, distributors would pay the Managed Data Solution fees in place of the current controlled subscriber fees for NASDAQ depth data.

At the distributor level, firms offering Managed Data Solution products will continue to be liable for the NASDAQ OMX depth distributor fees associated with their receipt and distribution of NASDAQ TotalView, NASDAQ Level 2 and NASDAQ OpenView information. There are currently no distributor fees for Managed Data Solution recipient usage.

How does my firm become an approved distributor of Managed Data Solutions?

To receive approval to offer a Managed Data Solution to clients, distributors must submit the appropriate documentation and receive prior approval from NASDAQ OMX:

What are my firm’s obligations as a distributor of Managed Data Solutions?

Managed Data Solutions distributors must:

  • Adhere to the NASDAQ OMX approval policy and only authorize clients for Managed Data Solutions after prior approval is received from NASDAQ OMX.
  • Report Managed Data Solution clients using the Online Reporting System for Summary Usage Reporting.
  • Include Managed Data Solution clients under new products codes for Detailed Usage Reporting.
  • Offer an integrated data solution with secured data transmissions and data usage monitoring capabilities.
  • Offer NASDAQ OMX depth data in its own messaging formats (rather than its raw NASDAQ OMX message formats).
  • Assume the liability for any unauthorized use of NASDAQ OMX data by Managed Data Solution recipients.

Please refer to the NASDAQ OMX - Managed Data Solutions filing to the SEC for more details.

What are my firm’s obligations to become approved to receive a Managed Data Solution?

Managed Data Solution recipients must submit a Managed Data Solution System Application for approval by NASDAQ OMX. NASDAQ OMX will then communicate the approval of each client via an email approval.

Does NASDAQ OMX plan to offer Managed Data Solution pricing options for its other markets and products?

As noted above, NASDAQ OMX will initially limit the Managed Data Solution program to NASDAQ depth products. NASDAQ OMX will evaluate its next steps once the Managed Data Solution program is in place and actively being used by market data distributors.

Where can I find additional pricing information?

The full price lists are accessible at the following links:

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 $12 trillion. To learn more, visit: business.nasdaq.com.