Multiple Access Fees

FISD's User Committee is working with direct-bill exchanges on the development of a standard approach and automated process to more efficiently reconcile user and vendor entitlement reports. 

The expected result is more efficient overall inventory management and reconciliation processes, minimization of the need for cross-referencing/mapping and the elimination of multiple access charges.

The New York Stock Exchange has implemented a Multiple Installation Single User procedure in support of its long-standing policy of charging a single device fee for users receiving multiple services entitled for NYSE real-time data. The Nasdaq Stock Market is in the process of evaluating the impact of such a policy for Nasdaq data. We expect that evaluation to be concluded by mid-August 1999.

Below is an overview of the NYSE Multiple Installation Single User (MISU) policy:

Multiple Installations for Single Users (MISU)
As presented by NYSE, October 1998

The NYSE presented new procedures to support their long-standing policy of charging a single device fee for users receiving multiple services entitled for NYSE real-time data.

To take advantage of the new Multiple Installations for Single Users (MISU) reporting and reconciliation procedures, firms must:

• Assume monthly reporting obligations for all devices at MISU locations;
  
  
• update their Exhibit A/DFQ to reflect the new procedures covering reporting, reconciliation and verification;
  
  
• submit a monthly report showing the number of NYSE entitled devices on a user-by-user basis (note: the MISU reports must be generated from a technically enabled inventory management/entitlement system, the report locations must correspond with vendor report locations, they should include totals by vendor, and be reported through VARS);
  
  
• be able to conduct an internal audit of the MISU report (either annually or on request by NYSE).
  

According to Ron Jordan, MISU reconciliation will have no affect on vendor reporting. There is some work required by the firm, and the user organization must have an internal inventory management system to track market data usage. It is the firm that takes over responsibilities for reporting, and the NYSE that does the reconciliation by creating a new account for the firm and by comparing vendor-reported totals with those provided by the client. NYSE bases MISU billing on firm-reported billable totals. Jordan also noted that significant differences in vendor-reported totals and firm-reported totals could prompt a request for audit by NYSE.

Initial reaction to the MISU procedures by user firms was positive. The new procedures by NYSE are in direct response to user initiated discussions within FISD on eliminating multiple access fee charges and on the creation of more efficient and automated ways of reconciling user and vendor entitlement reports. User firms are encouraging other exchanges to adopt similar procedures and have indicated their interest in opening those discussions.