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Wednesday, June 19, 2019

Data News #2019 - 6
Nasdaq Requests Public Comments on the Definition of Professional and Non-Professional Usage

Markets Impacted:

Product Impacted:

  • All Nasdaq Products

Contact Information:

What you need to know:

Nasdaq is considering four proposals to clarify the distinction between professional and non-professional investors to alleviate industry burden.

Starting June 13 and ending July 26, 2019, Nasdaq is soliciting public comment on potential changes to the definitions of Professional and Non-Professional usage for market data fee filings.

What is being announced?

On April 10, 2019, Nasdaq released TotalMarkets to begin a public discourse and drive positive change on market structure and market data issues that represent and benefit all stakeholders, especially Main Street Investors. Since its publication, Nasdaq has held ongoing discussions with constituents across the industry to hone our recommendations into discrete, actionable solutions.

In the TotalMarkets paper, Nasdaq specifically recommended the need for more modern definitions of Professional and Non-Professional market data usage. After soliciting broad feedback from the industry in multilateral discussions, Nasdaq has now published our proposals and is soliciting broader, more formal comments from the public.

What are the proposals?

  • Ensuring all Main Street investors are considered Non-Professionals
  • Allowing non-financial small businesses to operate as Non-Professionals
  • Eliminating compliance liability for distributors for good-faith errors in reporting
  • Ensuring that occupational traders are treated as Professionals

What is Nasdaq requesting?

Nasdaq is specifically requesting that industry participants review our proposals and provide feedback to ensure we are properly addressing all concerns on this topic.

Why is Nasdaq taking this approach?

The concerns of the industry surrounding today’s established Professional and Non-Professional definitions are topics that Nasdaq takes seriously. As a demonstration of that, Nasdaq is encouraging industry participants to read and comment on Nasdaq’s proposals.

What will you do with the feedback?

The feedback Nasdaq receives through this process will be critical to ensuring our solutions continue to address customer concerns on this topic. The information received will help refine the proposals and ensure Nasdaq is recommending changes that the industry has had a voice in creating. If the feedback suggests a change to the current proposals, Nasdaq will review that in light of all feedback received as well as the current environment. All feedback will be made available as part of our filing with the Securities and Exchange Commission (SEC), so there should be an expectation that comments will be reviewed by Nasdaq, the SEC, and interested parties post-submission as part of the public filing on this topic.

How long will Nasdaq receive comments for this initiative?

Nasdaq plans on having the comment pages open until July 26, 2019. As always, Nasdaq is willing to engage in dialogue on this topic after that date, but all official comments will need to be provided by that date.

Where can I get additional information?

For questions about Nasdaq data products, please contact Nasdaq Global Information Services at +1 301 978 5307.


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Nasdaq (Nasdaq: NDAQ) is a leading global provider of trading, clearing, exchange technology, listing, information and public company services. Through its diverse portfolio of solutions, Nasdaq enables customers to plan, optimize and execute their business vision with confidence, using proven technologies that provide transparency and insight for navigating today's global capital markets. As the creator of the world's first electronic stock market, its technology powers more than 90 marketplaces in 50 countries, and 1 in 10 of the world's securities transactions. Nasdaq is home to approximately 3,900 total listings with a market value of approximately $13 trillion. To learn more, visit: business.nasdaq.com.

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