What is the significance of changing from CPE to Equipment Configuration?

The phrase “Customer Premises Equipment Configuration” may have led to some confusion about the significance of the ownership and location of the specific equipment used to establish a direct connection to market data feeds. By replacing “Customer Premises Equipment Configuration” with the simpler phrase “Equipment Configuration,” Nasdaq intends to clarify that it is the number of equipment configurations and not the ownership and location of the equipment that determines monthly access fees.

Why do Direct Connect customers need to pay Equipment Configuration fees?

Downstream data recipients that receive Nasdaq market data feeds will pay the same monthly access fee regardless of whether they receive the data from an Extranet Provider or from a Direct Circuit Connection to Nasdaq. In providing direct connect connections to market data feeds, Nasdaq is serving a function like an extranet, and both extranet customers and direct connect customers benefit from the same data republisher that helps ensure a reliable data stream. Nasdaq believes that the change will make this relationship clearer to market participants.

Who do the Fees apply to?

The below fees apply to Extranet Providers and Direct Connect data recipients:

• Extranet Providers are entities that: (a) sign the Nasdaq Extranet Provider Agreement; (b) establish a telecommunications connection directly to Nasdaq; (c) are co-located within a Nasdaq facility; and (d) provide their own customers with access to a Nasdaq service or product in a Nasdaq facility or elsewhere. Defining Extranet Providers based on their operating characteristics is preferable to defining them in terms of the technology that they employ because technology changes.
• Members and Non-members to whom market data is published via a Direct Circuit Connection from Nasdaq (which is acting like an Extranet Provider).

What are the fees?

What do I need to do?

Nothing at present; firms will be charged based on the number of Equipment Configurations they have with Nasdaq.

What are the new billing and report title descriptions?

For Extranet Providers: The above fees are not a change from previously announced fees (see Data News #2014-13). Updated billing descriptions provided below for your convenience:

For Direct Connect Customers: In accordance with customers’ direct connection agreement, the fee currently charged is a $750 “Republisher fee”. Effective September 01, 2017, the above Market Categories will be charged. The billing descriptions are provided for your convenience:

When will the above fees be reflected on my invoice?

The above fees will be reflected on your October 7th invoice, for the September service period.

Are colocation customers impacted by the above fees?

No, only customers connecting directly to Carteret, Secaucus, and Ashburn data centers are impacted at this time.

Where can I find additional Information?

Refer to the Nasdaq Extranet Connection Agreement on the Nasdaq Trader website.

Contact Nasdaq Global Information Services at +1 301 978 5307 or +45 33 93 33 66.