Wednesday, July 30, 2008

Data News #2008 - 45
NASDAQ OMX Provides Guidance on PBOT Market Data Vendor/Subvendor Agreement

Please Route to:

• PBOT Vendor Admin Contacts

Data Feed Impacted:

• PBOT Index Data Feed

Summary:

• As announced in NASDAQ Options Trader Alert #2008-011, on July 24, 2008, the NASDAQ OMX Group formally acquired the Philadelphia Stock Exchange (“PHLX”) and its subsidiaries, including the Philadelphia Board of Trade (“PBOT”).
• In coordination with this transaction, aspects of PBOT’s market data administration are being amended.
• NASDAQ OMX is requiring written notification of each firm’s intention to continue with or cancel PBOT’s market data service.
• To continue receiving PBOT market data, including the PHLX Sector Index Spot and Settlement values, organizations are required to execute a new NASDAQ OMX Agreement, if they do not already have one.

Overview:

As announced in NASDAQ Options Trader Alert #2008-011, on July 24, 2008, the NASDAQ OMX Group formally acquired the Philadelphia Stock Exchange (“PHLX”) and its subsidiaries, including the Philadelphia Board of Trade (“PBOT”).

In coordination with this transaction, aspects of PBOT’s market data administration are being amended. Prior to the transaction, firms were required to execute the Philadelphia Board of Trade Market Data Vendor/SubVendor Agreement (“PBOT Agreement”) with PBOT in order to receive a data feed containing market data distributed by PBOT. Pursuant to Section 3 of the PBOT Agreement, the Agreement “may be terminated by either Party for any reason or no reason by giving the other Party ninety (90) days written notice of termination.”

On July 30, 2008, firms were given 90-day notification that NASDAQ OMX plans to alter the terms of the PBOT Agreement, in accordance with Section 3 of the Agreement.

Firm Responsibilities:

NASDAQ OMX is requiring written notification of each firm’s intention to continue with or cancel PBOT’s market data service.

• Continuing with Service - To continue receiving PBOT market data, including the PHLX Sector Index Spot and Settlement values, organizations are required to execute a new NASDAQ OMX Agreement, if they do not already have one. To distribute the data, organizations must complete the NASDAQ Distributor Agreement, which can be accessed on the NASDAQ Trader^® website. To request a hard-copy version of the Agreement, please email NASDAQ OMX Global Data Products Administration or call +1 301 978 5307, option #3.

  Organizations that have previously executed a NASDAQ Distributor Agreement are not required to re-execute. Organizations that have not executed a NASDAQ Distributor Agreement within 90 days of the acquisition date will cease to receive PBOT’s market data at the end of the 90-day period.

  Invoicing/Usage Reporting Requirements - Prior to this transaction, PBOT market data was invoiced by PHLX. Organizations receiving PBOT market data after the acquisition date of July 24^th will be invoiced by NASDAQ OMX as of the service month of July 2008. The PBOT market data fee schedule will continue to apply, and NASDAQ OMX will issue the first invoice on or around August 7^th for the service month of July 2008. Also beginning July 24^th, distributors are required to submit usage reports online via the Online Vendor Reporting (OLIVER) System or via email to NASDAQ OMX Global Data Products Administration.

  Please note that NASDAQ OMX will invoice firms based upon the last usage report received before the service month end and will continue to invoice based upon the last usage report received for each service month until an updated report is received. Any adjustments to past service months will automatically be reflected on the next invoice.

  Revised Reporting - Please note that, per the NASDAQ OMX agreements, Distributors are limited to a sixty (60) calendar-day grace period in which to revise their usage reporting in order to obtain retroactive credits. NASDAQ OMX cannot provide a distributor with back credits for original or revised reporting received after sixty days.

• Canceling Service - To cancel PBOT market data, firms must provide written notification by October 31, 2008, to NASDAQ OMX via email to NASDAQ OMX Global Data Products Administration or via fax to + 1 301 978 5295, as per the terms of the PBOT Agreement.

  Additional Information:

  • For questions regarding the fee schedule or reporting guidelines, please contact NASDAQ OMX Global Data Products Administration at +1 301 978 5307, option #3.
  • For assistance interpreting your invoice, please contact the NASDAQ OMX Billing Department at +1 800 955 3898.

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