Data News Nordic #2020 - 8: Nasdaq Announces changes to Nordic & Baltic Derived Data policies - Effective January 1, 2021
Markets Impacted:
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Nordic Markets
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Baltic Markets
Products Impacted:
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Nordic Equity Derived Data
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Baltic Equity & Fixed Income Derived Data
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Nordic Derivatives Derived Data
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Commodities Derived Data
What you need to know:
As of January 1, 2021 Nasdaq will update the policy for Derived Data on Nordic and Baltic markets for Equity-, Derivatives- and Commodities- securities.
Changes are related to Single security Derived Data that contains price data, and is based upon a single security symbol. Such use cases will be fee liable at the underlying product rates.
Please see below updated policies that will be included in European Markets Data Policies document in the Derived Data- section.
What is changing?
Single Security Derived Data Policy
From January 1, 2021, single security derived data for Equity-, Derivatives- and Commodities- securities that contains price or quote data, and is based upon a single security symbol, and is created in whole or in part from Nasdaq Nordic and Baltic Information will generally be fee liable at the underlying product rates.
For example: displaying a price of a single Nasdaq Nordic equity security in real-time that is comprised with prices from other trading venues is not considered to be Derived data and is fee liable at underlying real-time subscriber product rates. Examples of single security data that are not considered to be Derived Data and are fee liable at the underlying product rates include (but are not limited to):
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Displaying the price of a security near or at the inside
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Equity curves
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Alert messages with prices
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Binary options data
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Indicative equity quotes
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Analytical or graphical representations with prices
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Alerts that meet preset criteria set by the Subscriber
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Contracts for Difference (CFD)
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Display of auto-quotes
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Price valuations for individual securities
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Spread transactions & Spread based derivative instruments
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Use of Nordic margin price data to create a derived data product
The use cases of single security Derived Data that will be considered as derived and not liable for the underlying product rates are:
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Certain Trading Platform publications: See below section “Trading Platform Derived Data Policy”
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Derived Data used for Net Asset Value [NAV] calculations for funds listed on Nasdaq Nordic is not fee-liable
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Derived Data used for calculations for ETP/ETN and similar instrument types listed and traded exclusively on Nasdaq Nordic exchanges is not fee-liable
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Calculating Volume Weighted Average Price (“VWAP”) – where a Distributor or SI takes Nordic data and uses volume and share price parameters to calculate VWAP – used to measure average price weighted by volume. From the VWAP value, it is not possible to reverse engineer the price, or the volume
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Signal creation - where a Distributor uses data in real-time to create signals like buy/sell indicators, graphical representation of buy/sell indicators, charts and other non-price related graphical representations
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Internal usage of Nasdaq LBMA Derived Data is not fee-liable with a Nasdaq LBMA enterprise license. Nasdaq LBMA derived data is not fee-liable when distributed to controlled terminals of Nasdaq LBMA data, but where used outside a controlled terminal, it requires a separate Nasdaq LBMA enterprise license. For all other Nasdaq LBMA products derived data is not allowed
If your firm is unsure about a specific use case, please submit your use case to your Nasdaq Representative for a determination.
Multiple Security Derived Data Policy
From January 1, 2021, multiple security Derived Data that contains price data and is not based upon a single security symbol will generally not be fee liable at the underlying product rates, and Distributors will be liable for the relevant Derived Data fee.
Examples include:
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Portfolio valuation: creation of the asset value of a portfolio of securities (multiple securities). Examples include, but are not limited to: Mutual Fund Valuations (NAVs), or Hedge Fund Valuations
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Creation of prices for certain products that contain multiple security information, such as derivatives based on combinations of multiple securities where the underlying single security price information cannot be reverse engineered
For Nordic Equity, Nordic Fixed Income, Nordic Derivatives, Nasdaq Commodities and Baltic Equity and Fixed Income; Derived Data Fees do not include the right to create real-time indexes. If using the data to create indexes, only the Index calculation fees would apply. If using for both Derived Data and indexes, then both fees would apply.
If your firm is unsure about a specific use case, please submit your use case to your Nasdaq Representative for a determination.
Trading Platform Derived Data Policy
A Trading Platform operator is liable for a fee if the data used is sourced from Nasdaq either directly or indirectly via a data vendor. If a trading platform receives data from multiple sources including Nasdaq, it is required to have entitlements, controls, and mechanisms to demonstrate how the data is utilized for pricing and quoting.
Examples of derived usage – note that this list it not exhaustive and does not limit what Nasdaq will consider to be fee liable at the underlying product rates or Trading Platform fee including display fees:
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Delaying a quote insignificantly is not considered to be Derived Data. All data delayed with less than 15 minutes is considered to be real-time data
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Altering the volume of a quote, but keeping the same price is not considered Derived Data, for example the Nasdaq volume is 100 shares but Trading Platform offers 10 shares
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Adding small amounts of decimals that marginally alter a quote is not considered to be Derived Data
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Random calculations that affect the quote marginally are not considered to be Derived Data
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Using a price of a single Equity-, Derivatives- or Commodities- security in real-time that is comprised with prices from other trading venues is not considered to be Derived data
Non-Display usage: When a Trading Platform uses Nasdaq market data for best execution checks, the Non-display Trading Platform License applies. If it is also used for order routing purposes, other applicable Non-display License apply.
Display data usage: Please see Nordic & Baltic fee schedules in Nasdaq European Markets Data Price List.
Where can I find additional information?
For questions regarding this notice please speak to your Sales Representative or contact DataEurope@nasdaq.com or by telephone: +46 8 405 7500 or +45 33 93 33 66.
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