Nasdaq looks to reduce data fees for broker-dealers

Fierce competition among exchanges for data sees Nasdaq look to open up scope of data to investing public.

Nasdaq has proposed a reduction in its monthly data fees for broker-dealers and to eliminate a requirement that broker-dealers purchase other products to qualify for a license.

The exchange group is looking to reduce the enterprise license fee for Nasdaq basic from $350,000 per month to $100,000, according to a recent filing with the Securities and Exchange Commission (SEC).

The fee reduction would be for broker-dealers who distribute Nasdaq Basic to professional and non-professional subscribers that have a relationship with a broker-dealer subscriber.

“The proposed changes will promote the use of Nasdaq Basic by lowering its cost to investors and broadening the scope of its distribution to the investing public,” Nasdaq said.

A requirement that broker-dealers purchase other products - specifically Last Sale for Nasdaq and Last Sale for NYSE and NYSE MKT - would also be eliminated.

Nasdaq explained the fees for Nasdaq basic are “constrained by competition among exchanges and other entities attracting order flow.”

“Order flow is the “life blood” of the exchanges. Broker-dealers currently have numerous alternative venues for their order flow,” Nasdaq added.