What is changing?

Effective January 1, 2017, Nasdaq will modify the fee model for the MFDS product. All current fees will remain unchanged. The new MFDS Distributor Fee structure will be as follows:

* MFQS issuer firms and pricing agents will be exempt from the new fees. MFQS issuer firms and pricing agents will still be subject to the existing Real-time External Tiered Distributor Fee.

* Firms currently subject to the External Real-time Distribution tiered pricing schedule will be exempt from the new fees.

* Firms subscribed to both Internal Real-time and Internal Delayed will only be subject to the Internal Real-time fee.

* Delayed data is considered to be data that is distributed after 12:00 a.m. Local Time the next business day but prior to 8:00 p.m. Local Time that next business day.

What data does MFDS provide?

MFDS collects and distributes daily price and distribution data for 34,800 mutual funds, money market funds, unit investment trusts (UITs), structured products and variable annuities. This represents an 18% increase over the last three years. For the complete data description, please refer to the MFDS data feed specification document.

Nasdaq has continually worked on enhancing the MFDS product by improving the content and delivery methods. Nasdaq is currently analyzing opportunities to expand the content set available via MFDS in 2017.

Who is subject to the MFDS Real-time Distributor Fee?

All firms that receive MFDS data on a data feed and distribute the MFDS daily price data before 12:00 a.m., Local Time, the next business day are subject to the MFDS Real-time Distributor Fee.

Firms currently subject to fees for the MFDS Real-time External Distributor Fee tiered pricing model will also be exempt from the new fees. This includes MFQS issuer firms and pricing agents.

Who is subject to the MFDS Delayed Distributor Fee?

External use: Firms that receive MFDS data on a data feed and distribute the MFDS daily price data after 12:00 a.m., Local Time, the next business day and prior to 8:00 p.m. Local Time that same business day externally are subject to the MFDS - External Delayed Distributor Fee.

Internal use: Firms that receive MFDS data on a data feed and distribute the MFDS daily price data after 12:00 a.m., Local Time, the next business day and prior to 8:00 p.m. Local Time that same business day internally are subject to the MFDS - Internal Delayed Distributor Fee.

Firms subscribed to both Internal Real-time and Internal Delayed will only be subject to the Internal Real-time fee.

At what point does this data become free internally and/or externally?

Firms that receive MFDS data on a data feed and distribute the MFDS daily price data after 8:00 p.m. Local Time the following business day are not subject to any fees at this time.

Would I be subject to the MFDS Distributor Fee if I only provide data to internal users?

Yes. Nasdaq will charge the MFDS Distributor Fee to firms that receive the MFDS data on a data feed and provide data in real-time or delayed to internal users (the respective fees above would apply).

Firms subscribed to both Internal Real-time and Internal Delayed will only be subject to the Internal Real-time Distributor fee.

MFQS issuers and pricing agents subscribed to Internal Real-time, Internal Delayed or External Delayed data are exempt from the new fees. MFQS issuer firms and pricing agents are still subject to the existing Real-time External Distributor Fee tiered pricing model.

What are the reporting requirements for the above services?

Nasdaq MFDS distributors are expected (not required) to separate the entitlements for MFDS services as outlined above and from the existing Nasdaq Basic or UTP services. Regardless, all data feed customers receiving real-time or delayed MFDS data must be identified in the Nasdaq proprietary VRXML reports (not bundled into the UTP reporting). See the Global Data Policies Document for additional details.

All customers subscribing to these services are expected to complete the standard prior approval process.

Will Nasdaq modify the MFDS External Real-time Tiered Distributor Fee model?

No. At this time, Nasdaq will continue to assess the fees as outlined in the Nasdaq Global Data Products – U.S. Pricing page for MFDS external real-time distribution.

Will Nasdaq modify the MFDS Direct Access Fee, MFDS Hosted Solution or MFQS Daily List Fees?

No. At this time, Nasdaq will continue to assess the direct access fee of $500 per month to firms that process the MFDS data feed directly from Nasdaq via a direct network connection or authorized extranet connectivity provider.

The MFDS hosted solution and the MFQS Daily List fee structures will remain as outlined on the Nasdaq Global Data Products – U.S. Pricing page on the Nasdaq Trader website.

Will Nasdaq modify the MFQS Instrument Registration Fees or Valuation Service Fees?

No. At this time, Nasdaq will continue to assess the fees as outlined in the Nasdaq Global Data Products – U.S. Pricing page for MFQS.

Where can I find additional information?

For more information, please contact your Nasdaq Sales Representative at +1 301 978 5307 (Option #1).