What is Nasdaq Canada Announcing?

Effective Monday, April 01, 2019, Nasdaq Canada is implementing a fee schedule for the use of Nasdaq Canada Market Data in a Non-Display manner.

What improvements has Nasdaq Canada made to support the customer base?

Nasdaq Canada is continuously improving the CXC and CX2 marketplaces; to not only benefit the quality of the Nasdaq Canada marketplace, but also to enhance the overall customer experience. These improvements include, but are not limited to:

• Creating a new Disaster Recovery (DR) center in Chicago, which improves the resiliency and reliability of the Exchange for all participants.


• Adding a new Point of Presence (POP) in Markham, Ontario to increase the connectivity options available to customers deciding on their optimal connectivity set up.


• Migrating the Nasdaq CXC and CX2 Trading Books to INET technology, which improves customer interaction with the exchange by leveraging Nasdaq’s best-in-class market technologies.


• Creating a new and easy-to-use portal that offers a full suite of reports for Nasdaq Canada, allowing customers to access their end-of-day trade reports, marketplace statistics and other reports efficiently and effectively.


• Updating features on the Exchange, such as Enhanced Order Protection Rule Functionality. This enhanced feature provides subscribers with a mechanism to cancel back orders.


• Creating the Nasdaq CXD Trading book to provide a new alternative for investors looking for best price when trading large quantities of stock.


• Expanding the coverage of tradeable securities by adding CSE-listed securities on all three trading books based upon customer demand.


• Continuing to innovate new and improved trade functionality, such as incentives for NBBO setting and liquidity adding. Additionally, Nasdaq Canada has added a trade liquidity indicator to provide greater transaction cost transparency, improving insights and optionality when interacting with the exchange.


• Creating new and innovative Market Data products such as Nasdaq Basic Canada, which will help firms lower their market data costs by reducing the cost of developing a Nasdaq Canada consolidated top of book product, among other things. Nasdaq Basic Canada extends the value proposition pioneered by Nasdaq Basic US, which has saved global firms over US$253 million since launch.

Why is Nasdaq introducing this change now?

As Nasdaq Canada continues to invest in and improve products and services designed to meet and exceed the evolving demands of our customers, there is a corresponding increase in value derived from interacting with the Nasdaq Canada market.

When will Non-Display become fee liable?

Non-Display pricing for Nasdaq Canada takes effect Monday, April 01, 2019, pending approval by the OSC.

What is the fee schedule for Non-Display usage in Canada?

The Nasdaq Canada Non-Display pricing schedule is determined by Trading Book, Market Data Product, and type of Non-Display Usage. The grid below outlines the prices associated with the intersection of these three criteria.

How does Nasdaq Canada define Non-Display?

Non-Display is defined as any method of accessing Nasdaq Canada Information that involves access or use by a machine or automated Device without access or use of a Display by a natural person or persons.

What are the different types of Non Display usage?

Nasdaq Canada considers two separate and distinct uses of Non-Display content:

• Trading Usage:
  • Use of real-time Market Data in programs or applications which generate orders or order recommendations in an automated manner.
    • Examples include, but are not limited to, smart order routers, execution algorithms, arbitrage strategies and market-making strategies
• Analysis Usage:
  • Use of real-time Market Data in analysis programs or applications that may lead to or contribute to purchases, sales or other trading decisions.
    • Examples include, but are not limited to, risk management systems, storing of real time Market Data for historical data testing purposes and calculation of derived Market Data

How will Non Display Fees be assessed?

Non-Display fees are optional licenses for the use of Market Data from the CXC and CX2 Trading Books in a Non-Display manner. Usage of Market Data from the CXD Trading Book in a Non-Display manner will continue to be allowed for no fee. In determining the applicable Non-Display fee, customers must determine their Non-Display Use type according to the criteria below.

Non-Display Usage Type: Trading Usage and Analysis Usage are separate line items. However, the purchase of the Trading Usage license includes Analysis Usage on the same Trading Book and Market Data Product

• Example: Purchase of Nasdaq CXC Trading Usage for Level 1 Data ($1,000.00 CAD) includes Non-Display Analysis Usage for Nasdaq CXC Level 1 data ($500.00 CAD).

Market Data Product: Nasdaq Canada Top of Book (Level 1) and Nasdaq Canada Depth (Level 2) are listed as separate line items. However, the purchase of a Level 2 Market data Non-Display License includes the ability to use the Level 1 data from the same Trading Book for no additional fee.

• Example: Purchase of Nasdaq CX2 Analysis Usage –Level 2 ($400.00 CAD) includes the Non Display Analysis Usage for Nasdaq CX2 Level 1 data ($200.00 CAD)

Trading Books: Non-Display fees assessed per trading book and are always independently assessed.

Can you provide an additional example of Non-Display fee assessment?

Non-Display Trading Usage of Nasdaq CXC Level 2 data is fee liable at $1,800 CAD per month, as of Monday, April 01, 2019.

• Since Trading Usage includes Analysis Usage, the above fee is inclusive of both Trading and Analysis usage of Nasdaq CXC data in a Non-Display manner.
• In addition, since the Non Display Fee for Level 2 data includes the use of Level 1 data, the above fee is also inclusive of Level 1 Trading and Analysis Usage in a Non Display manner.

Non Display Trading Usage of Nasdaq CXC Level 2 data as well as Nasdaq CX2 Level 2 data for fee liable at $1,800 CAD per month and $800 CAD per month respectively, for an invoice total of $2,600 CAD per month, as of April 1, 2019.

• In paying this $2,600 fee, the firm receives access to both Nasdaq CXC and CX2 Level 1 and Level 2 data for both Trading and Analysis Usage.

What are Nasdaq Canada’s three trading books?

Nasdaq Canada’s three trading books are: CXC, CX2, and CXD.

• CXC is a key lit pool of liquidity in Canada that provides users a reliable trading platform for Canadian equities;
• CX2 offers further cost savings and trade efficiencies that leverage Nasdaq INET technology through a unique pricing model and broker preferencing functionality; and
• CXD is an alternative dark pool of non-displayed liquidity that was launched due to client demand, which delivers advantages like trading-at-the-touch and competitive pricing, along with other easy-to-use features.

How will Non-Display usage be clarified?

While Nasdaq Canada is introducing this fee model using generally-accepted policies in the Canadian marketplace, it is not without its complexities. To correctly assess fees, Nasdaq has created a Non-Display Attestation form to effectively and efficiently communicate data usage.

All firms receiving market data from Nasdaq Canada must submit this Non-Display Declaration form by April 30, 2019 to ensure all necessary steps are taken to ensure the appropriate billing for usage within the April billing period.

• http://nasdaqtrader.com/content/administrationsupport/AgreementsData/NasdaqCanada_NonDisplayUseForm.pdf

Where can I find additional information?

Your Nasdaq Canada Sales Representative is always available to assist in answering any and all questions. If you do not know your Sales Representative, please contact Nasdaq using the below details.

Email: ca.marketdata@nasdaq.com

Phone: +1 301 978 5307 (Option #1) or +45 33 93 33 66

Web: business.nasdaq.com

Phone +1 888 310 1560