Thursday, November 20, 2014

Data News #2014 - 12
Nasdaq Introduces Market Data Fee for Trading Platforms

Markets Impacted:

Products Impacted:

  • Nasdaq TotalView
  • Nasdaq OpenView
  • Nasdaq Level 2

Contact Information:

What you need to know:

  • Effective Thursday, January 1, 2015, Nasdaq will introduce a Trading Platform fee for Nasdaq U.S. Depth data. This fee is pending filing with the Securities and Exchange Commission (SEC).
  • The fee applies to Distributors that utilize Nasdaq U.S. Depth data in a Trading Platform.
  • A Trading Platform (for the purpose of this program) is defined as an SEC Registered Exchange, an Alternative Trading System, and/or an Electronic Communication Network.
  • Trading Platform Fees apply to Recipients under the Managed Data Solution Policy.
  • Vendors offering Managed Data Solutions to downstream Recipients are responsible for the payment of fees associated with this program.

What is changing?

Effective Thursday, January 1, 2015, Nasdaq will introduce a Trading Platform fee for Nasdaq U.S. Depth data. This fee is pending filing with the Securities and Exchange Commission (SEC) and affects Distributors using the following products: Nasdaq TotalView, Nasdaq OpenView, and Nasdaq Level 2.

What is the definition of a Trading Platform?

A Trading Platform (for the purpose of this program) is defined as an SEC Registered Exchange, an Alternative Trading System, and/or an Electronic Communication Network.

Furthermore, an Exchange is defined in Section 3(a)(1) of the Securities Exchange Act of 1934 Exchange definition, an Alternative Trading System, or ATS, is defined in Rule 300(a) of the SEC's Regulation ATS ATS definition, and an Electronic Communications Networks, or ECNs, is defined in Rule 600(b)(23) of Regulation NMS ECN definition.

What is the pricing structure of Non-Display Nasdaq U.S. Depth data for Trading Platform use?

The Trading Platform fee applies to Distributors that pay less than $15,000 in Direct Access U.S. Depth Non-Display fees per month.

The Trading Platform fee is $5,000 per month per Trading Platform. Distributors are only required to pay for a maximum of three (3) Trading Platforms, for a maximum fee of $15,000 per month. Note: Nasdaq Depth Non-Display Fees continue to be liable at the existing Non-Display fee schedules.

For example, if a Distributor pays $15,000 or more in total monthly Nasdaq U.S. Depth Direct Access Non-Display fees, the Trading Platform fee does not apply. Also, if a firm accrues $10,000 in Platform fees, and $75,000 in Nasdaq U.S. Depth Direct Access Non-Display fees, the Distributor is still responsible for the $75,000 fee and the Trading Platform fee does not apply.

Examples of additional scenarios (for informational purposes only) are shown below:

Number of Trading Platforms Trading Platform Fee
Nasdaq Depth
Non-display Fee Per Subscriber
Nasdaq Depth
Total Fee
1 $5,000 $3,300 $8,300
1 $5,000 $9,000 $14,000
1 $5,000 $15,000 $15,000
2 $10,000 $9,000 $19,000
2 $10,000 $15,000 $15,000
3 $15,000 $9,000 $24,000
4 $15,000 $9,000 $24,000
3 $15,000 $15,000 $15,000
4 $15,000 $75,000 $75,000

Trading Platform Fees apply to Recipients under MDS. Vendors offering Managed Data Solutions to downstream Recipients are responsible / assume liability for the payment of fees associated with this program. Furthermore, the MDS vendor is not eligible for the 3 Trading Platform maximum via commingling the count of multiple firms’ Trading Platforms (Trading Platforms must be counted for each firm separately).


Firm # of Trading Platform(s) Trading Platform Fee (owed by MDS Vendor)
a 0 $0
b 1 $5000
c 2 $10,000
d 3 $15,000
e 4 $15,000
Total $75,000

Does the Trading Platform fee replace the existing Nasdaq Depth Non-Display fee?

No. Distributors must continue to pay the existing Nasdaq Depth Non-Display fee based on the pricing and policies previously set forth. Trading Platform subscriber fees cannot be used to waive (or in any way alleviate) the current Nasdaq Depth Non-Display fee. Please refer to the Nasdaq Global Data Policies for more information on Unit of Count and Non-Display Usage.

What do I need to do?

Beginning January 1, 2015, monthly usage reporting is required for all Trading Platforms. Nasdaq will make new Trading Platform report titles available in NORA-Nasdaq Reporting Application for Distributors to report the number of Trading Platforms. If your firm has a Trading Platform to report and does not see a report title available in NORA by January 1, 2015, please contact dataops@nasdaq.com.

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.