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Thursday, September 26, 2013

UTP Vendor Alert #2013 - 10
REVISED 11.3.2015: UTP Level 1 Fee Changes; Net Reporting for Internal Subscribers, Redistributor Fees, UTP Data Policy Changes

Markets Impacted:

  • UTP/SIP

Products Impacted:

  • UTP Quotation Data Feed (UQDF)
  • UTP Trade Data Feed (UTDF)
  • OTC Montage Data Feed (OMDF)
  • Bulletin Board Dissemination Service (BBDS)
  • Trade Data Dissemination Service (TDDS)

Contact Information:

What you need to know:

  • The UTP Committee, pending filing with the SEC, will move forward with the implementation of a netting program.
  • The program, designed to meet the requests of many members, will mean recipients of datafeeds may report UTP Level 1 internal subscribers on a per user basis.
  • The netting program will go into effect on January 1, 2014, pending filing with the SEC, and include the following adjustments:
    • UTP Level 1 Professional Subscriber fee will be $23 per month
    • UTP Level 1 Direct Access fee will be $2,500 per month
    • UTP Level 1 Non-Professional Enterprise License fee will be $624,000 per month
    • UTP Level 1 Redistributor Fees for External Vendors of delayed and real-time data will be $250 and $1,000 per month, respectively.
  • An updated version of the UTP Data Policies now includes the Net Reporting Program and recent policy changes.

What is changing?

Effective January 1, 2014, and pending filing with the Securities and Exchange Commission (SEC), revised UTP Level 1 pricing will be introduced. The UTP Level 1 Professional Subscriber Fee will increase from $20 per month to $23 per month and in association with the Professional Subscriber fee increase, Recipients of datafeeds may report UTP level 1 Internal Subscribers on a Per User basis per the Net Reporting Program. The UTP Level 1 Direct Access fee will increase from $1,500 per month to $2,500 per month. New Redistributor fees will be introduced for External Vendors of delayed and real-time UTP Level 1 Information of $250 and $1,000 per month, respectively. The UTP Level 1 Non-Professional Enterprise License fee will increase from $600,000 per month to $624,000 per month.

Note, a new version of the UTP Data Policies now includes the Net Reporting Program and recent policy changes.

The new fee schedule is as follows with the fee changes shown in blue text.

Entitlement Name Monthly Fee
Usage Fees
UTP Level 1 — Per Subscriber Option Professional/Corporate: $23 Per Subscriber
Non-Professional: $1 Per Subscriber
UTP Level 1 — Per Query Option $0.005/Query
UTP Level 1 — Voice Response Port $21.25 per port
UTP Level 1 — Cable Television Ticker First 10 million: $2 per 1,000 Households
Next 10 million: $1 per 1,000 Households
Subsequent: $0.50 per 1,000 Households
Distributor Fees
UTP Level 1 — Access Fees Indirect Access $500 per firm
Direct Access $2,500 per firm
UTP Level 1 — External Redistributor Fees Delayed Redistributor $250 per firm
Real-Time Redistributor $1,000 per firm
UTP Level 1 — Hosted Data Feed
(Non-Display Only)
 $500 per firm
Enterprise License Option
UTP Level 1 Non-Professionals $624,000 per firm
Annual Administration Fees Annual Fee
UTP Level 1 Delayed Annual Administration Fee* $250 per firm

*The UTP Delayed Annual Administrative Fee continues to apply to Delayed datafeed Recipients; External Delayed datafeed Distributors will also pay the new monthly External Delayed Redistributor fee.

What is the Unit of Count for UTP Level 1?

Currently, Vendors are required to count and report on a Per Subscriber basis for UTP Level 1 Service. Only Vendors that are approved for the UTP Net Reporting Program, as described below, will be permitted to count and report on a Per User basis. Please see the UTP Data Policies document for the definition of Per User reporting.

What is the UTP Level 1 Net Reporting Program?

The UTP Net Reporting Program (Program) allows approved Vendors that submit usage reporting directly for UTP Level 1 Information to begin reporting display usage on a Per User basis, rather than by access, Interrogation Device or user ID and password. This is an optional program, and to participate Vendors must apply for consideration and be approved in writing. The Program is only available for display usage associated with Internal Subscribers, and does not include display usage controlled by market data vendors, Non-Display usage or External Subscriber usage.

How does a Vendor qualify to participate in the UTP Level 1 Net Reporting Program?

Vendors must be approved in advance to participate in the Program.

The full requirements for the Program are available in the UTP Data Policies document. The requirements include, but are not limited to:

  • Vendors must demonstrate adequate internal controls to entitle, monitor and report all internal display usage directly;
  • Vendors’ compliance of controls must be verified
  • Prior to approval, Vendor must submit detailed reporting according to the requirements and, if approved, credits begin as of the first month submitted.

Please contact UTP Administration for all of the acceptance criteria and to begin the process.

Which customers are affected by the new Redistributor Fee?

The newly introduced UTP Level 1 Redistributor Fees are applicable only to organizations receiving an uncontrolled retransmission datafeed containing UTP Level 1 Information and distributing the data to External Subscribers and/or datafeed Recipients. Vendors will be invoiced based on the information currently in the database as a basis for determining if each firm distributes externally. If your firm is assessed this fee and no longer distributes data externally, please contact UTP Administration for an immediate credit.

How will the new fees be implemented?

The fees are expected to go into effect as of January 1, 2014. Invoices for the January 2014 period will be sent on or about February 7, 2013, and billed monthly thereafter.

Are any new agreements necessary?

Provided that your firm has executed a Vendor Agreement for access to UTP Level 1 Services on a datafeed, no further action is required.

Who should I contact for additional information?

Please contact UTP Administration at +1 301 978 5307 Option #2

UTP SIP Plan Disclaimer:

The UTP SIP Plan governs the collection, processing and distribution of all UTP SIP data. The UTP SIP Plan is administered by the participant exchanges and associations listed at www.utpplan.com which determine policy matters and oversees system operations. The UTP SIP Plan has been approved by the SEC. Amendments to the plan are filed with the Commission in accordance with Section 11A of the Securities Exchange Act of 1934.

The UTP SIP data feeds consist of one network, Tape C, which is the single source of consolidated market data for all exchanges and associations that quote or trade Tape C securities. The UTP Quote Data Feed (UQDF) provides continuous quotations from all market centers trading Tape C securities. The UTP Trade Data Feed (UTDF) provides continuous last sale information from all market centers trading Tape C securities. If you have any questions regarding the UTP SIP Plan, please send an email to UTP Administration.