Tuesday, September 4, 2012

Financial Products News #2012 - 63
Updated 10/12/2012: NASDAQ OMX to Transition the RussellTick Index Service

What has been announced?

NASDAQ OMX^® will transition full responsibility for the RussellTick^TM service to Russell Investments and a new dissemination source, including all sales, administration, management, billing and dissemination of Russell index data. The anticipated effective date of the transition is December 4, 2012.

Additional updates will be provided as necessary as both NASDAQ OMX and Russell Investments are committed to a smooth transition with minimal client impact.

Subscribers should expect no gap in service nor data loss as the transition occurs. However, Direct Access customers will need to agree to receive RussellTick via the new dissemination source and connect to a new IP address and location to continue to receive the data. Russell Investments or the new dissemination source will communicate changes related to the transition.

In addition, Russell Global Indexes will be removed from the Global Index Data Service^SM (GIDS^SM).

For a full list of the covered indexes on the RussellTick data feed product, please click here. For a complete list of Russell Global indexes on GIDS, please click here.

Why is this change being made?

In 2010, Russell Investments outsourced index data distribution to NASDAQ OMX as an interim step to building an in-house system with the capability to manage, calculate and distribute their own real-time index prices. In order to service Russell index clients across all products and frequencies, Russell has been working with multiple providers to develop an end-to-end solution for calculating and distributing index data.

Russell and NASDAQ OMX will continue their long-term and collaborative relationship across other business areas including Russell's use of the NASDAQ Closing Cross^SM for their annual index reconstitution.

What does this change mean for RussellTick customers?

This change means that provision of RussellTick will be transitioning from NASDAQ OMX. Additional announcements regarding these changes will be communicated by Russell directly to RussellTick customers during the transition.

Will new request forms and agreements be required to access RussellTick data after December 4, 2012?

By November 2012, Russell will communicate details regarding new forms. Customers will be required to accept receipt of RussellTick via a new dissemination source in order to maintain service.

Do RussellTick service contacts change? Who do I call with questions on RussellTick?

NASDAQ OMX continues to be a valued partner and provider of RussellTick and will remain the day-to-day contact for all operational and product information related to NASDAQ OMX's dissemination of RussellTick until such time as the transition is complete.

Beginning in September 2012, all clients will be contacted directly by Russell Investments and the new dissemination source to further discuss details of the transition.

Will the format of the current index data contained within RussellTick change?

UPDATED 10/12/2012: Format changes will be announced by Russell Investments or the new dissemination source.

Will the RussellTick operational hours change?

The operational hours will not change.

What action do RussellTick customers need to take in response to this announcement?

Direct Access Feed Subscribers:

• Russell Investments or the new dissemination source will contact Subscribers to discuss the upcoming technical changes by October 2012. Ultimately, RussellTick will be available from a different IP address and physical location after Russell's transition is complete. At such time, this source data will no longer be disseminated from the NASDAQ OMX datacenter. Firms will receive a separate notice from Russell with instructions on making this change.

Subscribers using third-party vendors:

• Service will continue to be delivered by third-party providers, and subscribers will not have to take technical action to accommodate these changes.

Are any technical changes required?

If you receive RussellTick directly from NASDAQ OMX via a Direct Access license, you will need to connect to a different IP address which will be sent in a separate notification from Russell. RussellTick data will be available from a different source once the transition is complete.

If you receive RussellTick from a third-party provider, no technical change is necessary.

Will there be new connection IP addresses?

Yes, because RussellTick will be available from a new location, Russell will announce new connection IP addresses in early October 2012 for those currently receiving the data directly from NASDAQ OMX.

What is the bandwidth requirement?

The bandwidth requirement will not change. The current bandwidth recommendation is 2Mb.

Will there be testing opportunities before the December 4^th changeover?

Yes, parallel testing for those receiving the data directly from NASDAQ OMX will occur from October to November 2012. Please stay tuned for additional announcements.

Will there be a new specification document?

Yes, a new specification document will be provided by either Russell Investments or the new disseminator in advance of the parallel run.

What if the transition target date of December 4, 2012 is missed? What is the contingency plan to receive Russell index data?

NASDAQ OMX will continue to provide RussellTick in exactly the same way until further notice. Subscribers will receive updates from Russell Investments beginning in October regarding progress.

Will I continue to be invoiced by NASDAQ OMX for RussellTick?

Yes. NASDAQ OMX will continue to perform all services for RussellTick as they do today until further notice.

What will happen to the Russell index data currently on the Global Index Data Service (GIDS)?

Russell global index data on GIDS will be removed on or before December 4, 2012. NASDAQ OMX will provide additional information at a later date.

Where can I find additional information?

• Please continue to utilize your current NASDAQ OMX contacts or contact datasales@nasdaqomx.com for all questions related to the current dissemination of RussellTick.
• You will receive contact information for Russell Investments related to the new RussellTick service, sign-up, administration, billing, etc. by September 30, 2012.