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Research, News and Market Data Fees

 

 

How do I know if I am considered a Non-Professional or a Professional Subscriber?

What is a NONPROFESSIONAL SUBSCRIBER? Who is considered to be a NONPROFESSIONAL SUBSCRIBER?  What does PROFESSIONAL SUBSCRIBER mean? What is the difference between a NONPROFESSIONAL SUBSCRIBER and NONPROFESSIONAL SUBSCRIBER? Definition PROFESSIONAL SUBSCRIBER

NONPROFESSIONAL SUBSCRIBER: 

"A Non-professional Subscriber" is any natural person* whom a market data vendor has determined qualifies as a "Nonprofessional Subscriber" and who is not:

   

 

  1. registered or qualified with: the Securities and Exchange Commission, the Commodities Futures Trading Commission, any state securities agency, any securities exchange or association, or any commodities or futures contract market or association, nor
  2. engaged as an "investment advisor" as that term is defined in Section 201(11) of the Investment Advisers Act of 1940 (whether or not registered or qualified under that Act), nor 
  3. employed by a bank or another organization that is exempt from registration under Federal and/or state securities laws to perform functions that would require him or her to be so registered or qualified if he or she were to perform such functions for an organization not so exempt.

 

   

 

Any person who does meet the above criteria (a, b, & c) is considered a Professional Subscriber.

* The definition of a natural person excludes corporations, trusts, organizations, institutions, and partnership accounts.

 

 

PROFESSIONAL SUBSCRIBER: 

What are the Definitions of Professional Users According to the NYSE and Most US Exchanges?

 

Background: 

Most investors consider their trading and investment activity to be non-professional when it's purpose is not related to a compensated activity (e.g. job, consultant, investment advisor, etc.). The NYSE and many US exchanges have a far more encompassing definition of what it means to be "Professional" when it comes to accessing their real-time market data.

For these exchanges, the Pro vs Non-pro definition is tied to the person using the data more than the nature of the use itself, such that people who are employed in the financial industry -- even if not in a capacity relating to trading or other market-oriented activity - are classified as professionals simply because their employer is, for example, a bank. Similarly, if a person is registered with any financial regulatory body (e.g. FINRA), even if that registration is for activities not related to exchange or market functions, they are deemed to be "Professional".

The fees charged by data vendors and exchanges for professional use are generally substantially more expensive than fees for non-professional use.

It's important to note that these classifications are established by the exchanges and, while PT has no input into their definition, as intermediaries between data vendors and end users we are obliged to ensure that they are enforced.

 

Which Criteria is Used to Determine if I am Considered a Professional User?

Data vendors and exchanges consider a wide variety of criteria in determining if a user of their real-time market data is professional or can be qualified as non-professional. Many of the criteria used in this determination are included below and their definitions have been compiled from a number of exchanges. A user will be marked as a Professional if any of the following definitions apply to the account/user.

 

 

 

Criteria For Professional Users

A user will be marked as a Professional if any of the following definitions apply to the account/user. 

For specific documents, please check the bottom of the page for links.

  • If the account is not in the name of a Natural Person
  • If the account is an ORG account
  • If the user is registered with any securities agency
  • If the user is registered with any regulatory or self-regulatory body
  • If the user is engaged in financial services business or employed as a financial adviser
  • If the user is registered or qualified in any capacity with the SEC, the Commodities Futures Trading Commission, any state securities agency, any securities exchange or association, or any commodities or futures contract market or association
  • If the user is engaged as an “investment advisor” as that term is defined in Section 202(a)(11) of the Investment Advisors Act of 1940 (whether or not registered or qualified under that Act);
  • If the user is employed by a bank or other organization exempt from registration under federal or state securities laws to perform functions that would require registration or qualification if such functions were performed for an organization not so exempt
  • If the user operates as a bank or financial services provider
  • If the user uses data for commercial purpose
  • If the user is registered/qualified as pro securities trader or investment adviser with any national or state exchange, regulatory authority, professional association or recognized professional body
  • If the user is acting on behalf of an institution that engages in brokerage, banking, investment or financial activities
  • If the user is charging client fees.
  • If the user is a Securities Professional
  • If the user or account is a broker/dealer
  • If the user is an investment advisor
  • If the user is a registered representative who trades or advises on trades
  • If the user or the account is an investment club that receives or does not receive compensation
  • If the user is a subcontractor or independent contractor
  • If the user uses data in any manner for benefit of third parties
  • If the user is in contract for, receives, or uses Information for the purpose of Private Use on behalf of any other person or any corporation, partnership, limited liability company, trust, association or other forms of entity
  • If the user is in contract for, receives, or uses Information for the purpose of Private Use in any Service that is paid for by another person or any corporation, partnership, limited liability company, trust, association or another form of entity
  • If the user is accessing/using information in course of employment or in connection with any form of trade or business
  • If the account is a Trust that has more than one Trustee
  • If the account is a Trust and the Trustee is not a Natural Person. If the Trustee is an ORG and the sole owner of the ORG is a Natural Person, that does not count. The Trustee must be a Natural Person.
  • If the account is a Trust that has beneficiaries that are not immediate family members or if the beneficiaries are not Natural Persons
  • If the account is a Trust that is not a familial or family Trust.

To view the NYSE policy, go to www.nyxdata.com/Docs/Market-Data/Policies and click on All NYSE Market Data Policies - The Complete Package and scroll to page 23.

To view the NASDAQ policy, go to http://nasdaqtrader.com/Trader.aspx?id=AgreementsData and click on NASDAQ OMX Global Subscriber Agreement and see pages 2-6.

To view the OPRA policy, go to www.opradata.com and hover over "Agreements" on the left side and click on Electronic Subscriber Agreement (Attachment B-1 to Vendor Agreement) (PDF) and view the section from the bottom of page 3 until the end of page 4 including the footnotes.

 

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