Thursday, December 18, 2014

Data News #2014 - 14
Nasdaq Clarifies the Direct Access Definition

Direct Access Policy Clarification

In response to inquiries, Nasdaq^® is providing additional examples of the application of the existing Direct Access definition as technology and data distribution evolve. As a reminder, "Direct Access" is defined in the Nasdaq Rulebook (Rule 7019 (d)) as a telecommunications interface with Nasdaq for receiving Nasdaq data, or receiving a Nasdaq data feed within the Nasdaq co-location facility, or receiving Nasdaq data via an Extranet access provider.

In general, firms that are receiving data in the raw or native Nasdaq format are receiving Information in a Direct Access manner.

Some examples of Direct Access include, but are not limited to:

• Raw-data received within the Nasdaq Co-location facility;
• A Nasdaq provided port for U.S. Information anywhere in the world;
• Data in original format via a Nasdaq IP Address published on Nasdaq Trader.com or successor site;
• Providing Nasdaq GLIMPSE to a customer via a Data Feed;
• Changing the IP Addresses or Network Address Translation (NAT) of the Information where the Data Feed is still in its original format;
• Using NODE or similar Nasdaq Network connectivity options that expand the Nasdaq Data Centers globally, including wireless services where a firm connects to a Nasdaq interface;
• Any other delivery of U.S. Information that Nasdaq determines provides direct connectivity or the data formats provided by Nasdaq.

How may I get a determination on whether my connections are considered Direct Access by Nasdaq?

If your firm is unsure if your particular connection or Distributor product offering is considered Direct Access, please immediately contact your Global Data Products Account Representative or Nasdaq Global Data Sales at +1 301 978 5307 (Option #1) or +45 33 93 33 66, to ensure ongoing compliance by February 1, 2015.

What products are impacted by this definition?

The following Nasdaq U.S. products are impacted by this definition:

• Nasdaq Depth products, including Nasdaq TotalView, OpenView and Level 2
• BX TotalView
• PSX TotalView
• Global Index Data Service (GIDS)
• Mutual Fund Dissemination Service (MFDS)

Does the Direct Access definition impact distribution models or the Unit of Count a Distributor can offer to Recipients?

Yes. Recipients accessing Information via a Direct Access connection must report the connection as a Data Feed. Pursuant to existing exchange rules, Direct Access connections are not eligible for alternative distribution solutions, such as Managed Data Solution (MDS), the Enhanced Display Solution (EDS), or Subscribers/Controlled Devices.

Will Direct Access change my market data fees?

Yes, under existing exchange rules, for some data products, direct access may have a different fee than Distributor provided, normalized feed offerings. Additionally, Distributors utilizing Nasdaq Depth data in a non-display manner via Direct Access, will be fee liable under the Non-Display pricing tiers. For Non-Display tiered pricing information, see Data News #2012-3.

Where can I find additional Information?

For additional clarity regarding the Direct Access definition and what constitutes a Nasdaq telecommunications interface, please contact your Global Data Products Account Representative or Nasdaq Global Data Sales at +1 301 978 5307 (Option #1) or +45 33 93 33 66.