[14253]
December 17, 2001
TO: EQUITY MARKETS ADVISORY COMMITTEE No. 51-01
RE: SEC APPROVES PROPOSED RULE CHANGE RELATING TO FEES FOR NYSE
OPENBOOK SERVICE
The Securities and Exchange Commission has issued an order (a copy of which is
attached) approving a proposed rule change filed by the New York Stock Exchange1
establishing a set of fees for the NYSE OpenBook service, a new service in which subscribers
will be able to view limit orders contained in the NYSE limit order book. In particular, for every
limit price, OpenBook will include the aggregate order volume associated with that price. The
NYSE will make the OpenBook data feed available through its Common Access Point (“CAP”)
network and, initially, will update OpenBook every ten seconds.
The NYSE will charge two fees for the OpenBook service. First, the NYSE will collect a
fee of $5,000 per month from each entity that elects to receive the OpenBook data feed. Second,
the NYSE will collect an end-user fee of $50 per month for each terminal through which the end
user is able to display the OpenBook.
The SEC notes that in the proposed rule change, the NYSE also proposed several
conditions for the NYSE vendor or subscriber agreements that must be entered into in order to
utilize the OpenBook service. The SEC states that the approval order only approves the aspect
of the filing relating to the fees for the NYSE OpenBook service and that the SEC is not
approving or disapproving the terms of the NYSE's vendor or subscriber agreements. In
particular, the SEC notes that the NYSE's proposed restrictions on vendor redissemination of
OpenBook data, including the prohibition on providing the full data feed and providing
enhanced, integrated, or consolidated data found in these agreements are on their face
discriminatory, and may raise fair access issues under the Securities Exchange Act.
Ari Burstein
Associate Counsel
Attachment (in .pdf format)
1 See Memorandum to Equity Markets Advisory Committee No. 42-01, dated November 8, 2001.