Monday, November 11, 2013

Data News #2013 - 11
NASDAQ OMX Introduces New Managed Data Solution Fee Structure for PHLX Orders

What are Managed Data Solutions?

In response to customer feedback and changes in the technical distribution of market data, NASDAQ OMX^® is continuing to introduce the Managed Data Solution option for additional content. This is an option available to firms looking to simplify market data administration for their clients. Effective November 1, 2013, NASDAQ OMX introduced a Managed Data Solution for PHLX Orders data whereby the Distributor reports and pays on behalf of their Managed Data Solution Recipients. Distributors offering Managed Data Solutions continue to be fee liable for the applicable distributor fees for the receipt and distribution of the PHLX Orders or TOPO Plus Orders datafeed.

A Managed Data Solution is a new fee structure offered by NASDAQ OMX for certain products (See NASDAQ OMX Global Data Policies document for current Managed Data Solutions offerings). In this new fee structure, NASDAQ OMX allows a Distributor to report, and be fee liable for, a managed retransmission datafeed under a Managed Data Solution fee schedule when the Subscriber or Recipient uses NASDAQ information internally in a non-display application, server, or similar service, and the Distributor controls the entitlements. The Distributor must report each Subscriber access to a Managed Data Solution directly to NASDAQ OMX.

Under the Managed Data Solution fee structure, Distributors may provide datafeeds, Application Programming Interfaces (APIs) or similar automated delivery solutions to Managed Data Recipients with only limited entitlement controls. The Distributor maintains contracts with the Managed Data Recipients and is liable for any unauthorized usage. The Managed Data Recipients may use the information for internal non-display use only and may not distribute the information outside of their organization.

What are the new fees for Managed Data Solutions for PHLX Orders?

The fees to be paid by Distributors offering PHLX Orders in a Managed Data Solution (non-display only) will be as follows:

Distributors will pay the Managed Data Solution fees for PHLX Orders data. Distributors offering Managed Data Solutions continue to be liable for the PHLX Orders or TOPO Plus Orders distributor fees associated with their receipt and distribution of PHLX Orders data. There are currently no distributor fees for Recipients of Managed Data Solutions.

How does a firm become an approved Distributor of Managed Data Solutions?

To become a Distributor that is authorized to offer Managed Data Solutions to Recipients, Distributors must submit the following documents for each Managed Data Solution system offered to Recipients:

• NASDAQ OMX Global System Application Datafeed Request Form: Online or Hard Copy [if new data is required]
• NASDAQ OMX Global Data Agreement [Required for all firms prior to initiation of the first datafeed only]

For the PHLX Orders, Distributors need to receive prior approval from NASDAQ OMX for each application or system offering a Managed Data Solution option as detailed below. After Distributors are granted permission to provide Managed Data Solutions, each individual Recipient of a Managed Data Solution must be prior approved as well.

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

Distributors offering Managed Data Solutions 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); and
• Assume the liability for any unauthorized use of NASDAQ OMX data by Managed Data Solution recipients.

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

To become a Recipient that is authorized to receive a Managed Data Solution for Recipients must submit the following documents for prior approval. If a Distributor provides data to an unapproved Recipient or releases Information prior to approval, the Distributor is responsible for paying the Recipient’s fees and charges associated with this data during the unauthorized timeframe.

• NASDAQ OMX Global Subscriber Agreement [submit to your Distributor/Data Provider, no approval of the Subscriber Agreement is necessary from NASDAQ OMX]
• NASDAQ OMX Managed Data Solution Recipient Application [submit to NASDAQ OMX]

Where can I find additional pricing information?

The full price lists are accessible at the following links:

• U.S. Data Products Fee Schedule.
• European Data Products Fee Schedule.

Where can I find additional information?

• Refer to the NASDAQ OMX Global Data Products Administration Page.
• Contact NASDAQ OMX Global Data Products at +1 301 978 5307, #2 or +45 339 333 66.