Tuesday, August 20, 2013

UTP Vendor Alert #2013 - 8
Reminder: UTP Level 1 Hosted Datafeed Program

Markets Impacted:


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:

  • As announced in Data News #2012-23, NASDAQ OMX® is reminding firms of an optional program for Distributors that offer datafeeds to Recipients using UTP Level 1 data for internal, Non-Display purposes only.
  • Distributors must have prior approval to become a participant in this optional UTP Level 1 program.
  • As always, Recipients of Datafeeds pay an indirect access fee, either directly to NASDAQ OMX or through their datafeed provider via this optional Hosted Datafeed program.

What is the Hosted Datafeed Program?

As announced in Data News #2012-23, the Hosted Datafeed program is an option for Distributors offering Retransmission Datafeeds containing UTP Level 1 Information to Recipients that utilize the data for Internal, Non-Display Usage only. The advantage of a Hosted Datafeed is that the Recipient of that Hosted Datafeed is not required to have a UTP Level 1 Vendor Agreement and the reporting and payment requirements are the responsibility of the Distributor, thus alleviating some of the administrative burden on the Recipient firm.

How can my firm be approved to offer Hosted Datafeeds?

To take advantage of this optional program, Distributors that wish to offer Hosted Datafeeds for UTP Level 1 Information, must submit the following documents for each system offering Hosted Datafeeds to Subscribers:

  • NASDAQ OMX Global System Application: to apply for approval to offer hosted datafeeds
  • Datafeed Request Form: Online or Hard Copy [only required for each firm prior to initiation of the first UTP Level 1 Datafeed]
  • UTP Level 1 Vendor Agreement [only required for each firm prior to initiation of the first UTP Level 1 Datafeed]
  • Distributors must attest that the following is true:
    • Distributor controls the datafeed entitlements to the non-display devices, and
    • Distributor monitors the data to ensure the non-display devices are located on the Distributor’s premises, and
    • Distributor contractually or technologically restricts the redistribution of the data.

After Distributors are granted permission to offer Hosted Datafeeds, each individual Hosted Datafeed Recipient must receive approval from NASDAQ OMX prior to receiving the data.

If a Distributor provides data to an unapproved Recipient or releases UTP Level 1 information prior to approval, the Distributor is responsible for paying the Recipient’s fees and charges associated with this datafeed during the unauthorized timeframe.

How does each Recipient receive a Hosted Datafeed?

To become a Hosted Datafeed Recipient, the Recipient must submit the below document prior to accessing the data.

The Hosted Datafeed Recipient must ensure the below is true.

  • Hosted Datafeed Recipient must only use the UTP Level 1 Information in an internal, non-display application, server, or similar service, and
  • Hosted Datafeed Recipient must only use the data on the Distributor’s premises, and may not redistribute the data to other users, devices or entities, and
  • Hosted Datafeed Recipient must sign a Subscriber Agreement, which prohibits redistribution.

What are the usage reporting requirements?

Distributors are required to comply with the NASDAQ OMX Global Data Policies, including submission of regular usage reports listing the total number of Hosted Datafeeds with ability to access UTP Level 1 information during the reporting period. Specifically, for Hosted Datafeeds, Distributor is to submit and report each Hosted Datafeed under a new product code that includes the number of downstream Hosted Datafeed Recipients, and submit payment of the UTP Indirect Access Fee on behalf of each Hosted Datafeed Recipient.

Where can I find additional information?

Please contact NASDAQ OMX Global Data Products at +1 301 978 5307 (Option #2).