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Monday, December 27, 2010

UTP Vendor Alert #2010 - 18
NASDAQ/UTP Plan Announces UTP Level 1 Non-Professional Enterprise License

Markets Impacted:

  • UTP/SIP

Products Impacted:

  • UTP Quotation Data Feed (UQDF)
  • UTP Trade Data Feed (UTDF)
  • OTC Montage Data Feed (OMDF)

Contact Information:

What you need to know:

  • Effective January 1, 2011, NASDAQ OMX® will offer a UTP Level 1 Non-Professional enterprise license option for broker-dealers.
  • The new UTP Level 1 enterprise license of $600,000 per month covers Non-Professional usage of UTP Level 1 data offered via a single entitlement system.
  • For more information on this UTP Level 1 Non-Professional enterprise license option, please contact NASDAQ OMX Global Data Products at +1 301 978 5307, #3.
 

Why is the NASDAQ/UTP Plan adding this new enterprise license?

An enterprise license has been requested by broker-dealers to enable better budgeting and management of market data fees as well as simplifying usage reporting. Without an enterprise license, the current UTP policies require that broker-dealers pay the higher, uncapped UTP Level 1 rates which may result in some broker-dealers electing not to launch Non-Professional products with real-time data.

What data sets are covered by the NASDAQ/UTP Plan enterprise license?

Under the NASDAQ/UTP Plan enterprise license, NASDAQ OMX will cap the monthly Non-Professional usage fees for UTP Level 1 data at $600,000 for any month [includes non-professional per user and per query] for participating broker-dealers. This option is only available to broker-dealers registered under the Securities Exchange Act of 1934.

Please note that the new license covers Non-Professional users of UTP Level 1 data entitlements only. Firms must continue to report and pay the applicable usage fees for Professional users accessing UTP Level 1 data as well as annual administration fees.

Will the new enterprise license remain at $600,000?

For calendar year 2011, the enterprise license is set at $600,000 per entitlement system. For each subsequent calendar year, the enterprise license may increase by the percentage increase in the annual composite share volume for the preceding calendar year, subject to a license annual increase of five percent.

When will NASDAQ OMX introduce the new enterprise license option?

NASDAQ OMX will offer the NASDAQ/UTP Plan Non-Professional enterprise license option to broker-dealer firms beginning with service month January 2011. The program has been filed with the Securities and Exchange Commission (SEC).

How can I sign up for the NASDAQ/UTP Plan Non-Professional enterprise license?

As noted above, the new NASDAQ/UTP Plan Non-Professional enterprise license is available to broker-dealers only.

To enroll in the program, contact NASDAQ OMX Global Data Products.

Where can I find additional information?

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