Wednesday, December 15, 2010
Data News #2010 - 34
NASDAQ OMX Clarifies its Direct Access Definition
Market Impacted:
- The NASDAQ Stock Market
- NASDAQ OMX BX
- NASDAQ OMX PSX
Product Impacted:
- NASDAQ TotalView
- NASDAQ Level 2
- NASDAQ OpenView
- BX TotalView
- PSX TotalView
- Mutual Fund Dissemination Service (MFDS)
- NASDAQ OMX Global Index Data Service (GIDS)
Contact Information:
- NASDAQ OMX Global Data Products+1 301 978 5307
What you need to know:
- NASDAQ OMX® is clarifying its direct access definition to provide a level playing field for all firms receiving a data feed product within the NASDAQ OMX co-location facility.
- Effective January 1, 2011, all firms with equipment in or circuits into NASDAQ OMX’s co-location facility are subject to the monthly direct access fees for NASDAQ OMX depth, mutual fund and index data.
Which customers are affected by this change?
Only those customers within the NASDAQ OMX co-location facility that are receiving data from a redistributor will be affected. Customers outside of the co-location facility are not affected by this change.
What is changing?
NASDAQ OMX is clarifying its direct access definition to ensure that all firms receiving data in the U.S. co-location facility are treated equally. For definitions of direct access refer to the following rules: NASDAQ Rule 7019, BX Rule 7019 and Section IX of the NASDAQ OMX PHLX Fee Schedule.
To that end, NASDAQ OMX will assess the direct access fee on all firms receiving a raw data feed product at the co-location facility including those firms receiving data via a distributor or vendor.
Why is NASDAQ OMX making this change?
NASDAQ OMX strongly believes that all firms in the U.S. co-location facility should be subject to the same fees, as they have the same access to low latency data. NASDAQ OMX has clarified the direct access definition to ensure all customers pay the same fees.
If I already pay a direct access fee, is there a change to my firm?
No. For customers that already pay a direct access fee for particular data products, there is no change. These customers will continue to pay the monthly direct access fee for receiving data within the co-location facility or directly from NASDAQ OMX via an extranet provider.
Is there a change for receipt of data from a vendor?
Yes, but only if your firm is receiving a NASDAQ OMX data feed within the NASDAQ OMX co-location facilities. Effective January 1, 2011, all customers receiving data within the co-location facility must pay the direct access fee.
As is the case today, firms receiving data from a distributor or vendor that are located outside of the co-location facility will not be liable for the direct access fee.
If my firm is affected, when do I need to start paying the fee?
The new direct access definition will go into effect on January 1, 2011. All co-location facility customers will be subject to the direct access fee beginning with the billing month of January 2011. Invoices for the January 2011 period will be sent on or about February 8, 2011.
How much are direct access fees and what products are affected?
The fees are dependent on the product a firm is receiving. Below is a list of products with direct access fees:
NASDAQ OMX Entitlement Name | Monthly Direct Access Fee |
---|---|
NASDAQ TotalView | $2000 |
NASDAQ OpenView | $1000 |
NASDAQ Level 2 | $2000 |
BX TotalView | $1000 |
PSX TotalView | $1000 (fee waived until October 2011) |
Mutual Fund Dissemination Service (MFDS) | $500 |
NASDAQ OMX Global Index Data Service (GIDS) | $2000 |
Please refer to the NASDAQ OMX Global Data Price List for more details.
What is the Co-Location service offered by NASDAQ OMX?
NASDAQ OMX offers all customers the opportunity to co-locate (CoLo) their trading systems within our highly-reliable data centers. Placing servers and telecommunications equipment in our recently expanded space significantly reduces message latencies, providing firms with faster access to the liquidity and speed of the NASDAQ OMX trading platforms.
If my firm receives data via a distributor or vendor at NASDAQ OMX’s co-location facility, do I need to sign any new agreements?
No. Provided that your firm has executed the NASDAQ OMX Global Data Agreement, no further action is required.
If my firm acts as a distributor or vendor at NASDAQ OMX’s co-location facility, do I have any additional reporting requirements?
As outlined in the NASDAQ OMX Global Data Policies, NASDAQ OMX requires that all distributors and vendors provide detailed usage reports on a monthly basis. In the detailed usage report, firms must identify the delivery or installation address for any data feed products. NASDAQ OMX will use the service address from this report to determine which firms are liable for the direct access fees.
Where can I find additional information?
- Contact NASDAQ OMX Global Data Products at +1 301 978 5307.
- Visit the Co-Location Services page on the NASDAQ OMX Trader® website.
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