Search:
   

Wednesday, March 21, 2007

Equity Regulatory Alert #2007 - 22
NASDAQ Provides an Update on New Sponsored Access Rule

Please Route To:Head Traders; Technical Contacts; Compliance Officers

What you need to know:

  • As announced in Regulatory Alert #2007-012, NASDAQ filed a Sponsored Access rule with the Securities and Exchange Commission (SEC) that became effective on February 16, 2007.
  • NASDAQ recently revised the agreements that must be completed by April 18, 2007, as required by this new Sponsored Access rule.

Whom you should contact: NASDAQ Market Sales at 800.846.0477

What is changing?
As announced in Regulatory Alert #2007-012, NASDAQ® filed a Sponsored Access rule with the SEC that became effective on February 16, 2007. This rule is identical to another exchange’s sponsored access rule. NASDAQ recently updated the agreements required by this new Sponsored Access rule to maintain consistency with recent changes made to the agreements by the originating exchange. These agreements must be completed by April 18, 2007.

What does my firm have to do to provide direct connectivity to NASDAQ?

  • NASDAQ members that provide others with direct connectivity to NASDAQ should carefully review and comply with the requirements in NASDAQ Rule 4611(d).
  • Each time a Sponsoring Member enters into an arrangement to provide direct connectivity to NASDAQ, the Sponsoring Member and the Sponsored Participant must complete and fax all applicable materials as described in the Application Checklist to NASDAQ Subscriber Services at 212.231.5426. NASDAQ Subscriber Services will notify both parties of approval of the arrangement.
  • The Sponsoring Member and the Sponsored Participant should consult with NASDAQ Subscriber Services at 212.231.5180 to determine the most beneficial connectivity.
  • Sponsoring Members may request a market participant identifier (MPID) for the Sponsored Participant.

What documents are described in the Application Checklist?

  1. Sponsored Access User Agreement, signed by Sponsoring Member — The Sponsoring Member must sign this agreement ONLY ONCE - the first time it enters into a direct access arrangement with a Sponsored Participant.
  2. Sponsoring Member Consent, signed by Sponsoring Member — The Sponsoring Member must complete a consent for each Sponsored Participant it elects to sponsor.
  3. Sponsored Participant Consent, signed by Sponsored Participant — Each Sponsored Participant must sign this consent.
  4. Sponsored Access User Agreement, signed by Sponsored Participant — Each Sponsored Participant must sign this agreement.

Where can I get additional information?


Email Alert Subscriptions:
Nasdaq offers customers the ability to self select news delivery across various Nasdaq markets. Create and maintain a profile for updating alert preferences and contact information. Visit the enrollment form on the Nasdaq Trader website and sign up today! Please note that if you choose to unsubscribe from an email list, you may no longer receive potentially critical emails from the NASDAQ Stock Market regarding Nasdaq's trading and data products, regulatory issues or marketplace initiatives. To unsubscribe, also click on the enrollment form

Please follow Nasdaq on Facebook RSS and Twitter.

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.

View NASDAQTrader.com Mobile