Market Data Advisory Notices
To | ALL CME Market Data Distributors
From | Information Products Management
Subject |
Notice Date | August 22, 2002
Notice Number | IPM 2002-10
Effective Date |
In May 2002, the Information Products Management of Chicago Mercantile Exchange announced its new information distribution agreement and pricing for the S&P Cash Index pricing to its market data distributors. Since then, we’ve received several inquiries regarding the contract pricing, policies, etc. Of the questions received, along with a few extras, we compiled a "Frequently Asked Questions" list that will hopefully assist those of you who have yet to return a completed new agreement. Please find below an attached copy of the Information Distribution Agreement. Below is the list of FAQ’s: FAQ: The New CME Information Distribution Agreement Q: Whom do I include in my Distributors Group? A: You can include any entities that you wish to be covered by the terms and conditions of your Agreement, subject to CME approval. These may be affiliated companies or what we term "third party service" facilitators – agents, software developers, trainers, Web sites displaying Distributors’ services, and others with whom you have an agreement. You must provide details about these entities in your completed Agreement. Q: I need to add a company to my Distributor Group. How do I proceed? A: You must make all requests in writing. Please include information about the company, their relationship to you and the work they will be carrying out. Upon approval, we will send out a new Schedule for you to complete. Q: We are currently using a software developer who requires real-time CME data for testing purposes only. Can we supply this fee-waived? A: Yes, as long as the software developer has been approved as a Service Facilitator by CME and is included on Schedule 3 of your contract. According to the Policies section (Schedule 4), Real-Time Information Fees may be waived for quality control, monitoring purposes, demonstration or product development. Q: A university has approached me requesting fee-waived CME data for its business school. Is this permitted? A: Yes. There are two ways a university can get CME data fees waived. You can include the university as part of your Distributor Group, or the university can contact us directly to sign a contract and CME will waive fees at its discretion. Q: With the new Agreement, do I need to continue using the old Uniform Subscriber Addendum (USA)? A: You can continue using the old USA if you prefer, or you can devise a new one, providing it complies with section 6.1 of the new Agreement. Q: I noticed a new fee – the Intellectual Property Creation License Fee. What is this for? A: This is a new annual fee for Distributors who wish to create and distribute new and original products using real-time CME data in which the quote data cannot be identified. In effect, this is a ‘derived data’ product fee. If the quote can be identified, the usual real time user fees apply. Q: What is the main benefit of completing the new Agreement? A: The new Agreement more accurately reflects the contemporary world of data distribution. The concept of the Distributor Group allows for a broader range of entities to be included under one contract, and the notice period for new fees has been increased from 30 days to 90 days. Q: Is there a deadline for completing the new Agreement? A: No, but there is a significant advantage. As long as you remain signed to the old contract, future price increases will come into force in 30 days, while those who have signed the Agreement have 90 days. FAQ: S&P Cash Indexes Q: I am currently a CME vendor. Does the annual distribution license fee include S&P data? A: Yes, the annual license fee for current vendors includes S&P data. You do, however, have to pay the applicable end user and Web site fees. Q: There are two fee structures for the S&P Indexes. Why is this? A: The fees cover different things. There is an annual flat Web Site Fee for public Web sites at which users cannot be identified and counted. For all other methods of distribution whereby users can be identified – at terminals and secure site log ins, for example – there are User Fees. Q: Must I report the S&P Indexes separately from my usual CME reporting? A: Yes. Actually, you must file two reports, depending on the services you offer—one for the public Web sites to which you supply S&P cash index data and one for user fees. Your public Web site report should include: account names, contact persons and Web addresses S&P fees for Web sites are paid annually. As the data became fee liable July 1st, the fee is prorated for the first year. Reports must be submitted annually, with monthly updates required to report any additions or deletions. Your user fee report requires: a summary count of subscribers at each pricing level User numbers must be submitted monthly, no later than 30 days after the end of each reporting month. Both Reports: Must be in Excel format Should be sent by email to Rachel Schachter (rschact@cme.com). Q: I supply data for a number of Web sites displaying the S&P Indexes. my clients need to sign a contract with you? A: Not necessarily. You can list the sites as part of your Distributor Group if you wish to administer on their behalf and be liable for reporting and payment of relevant fees. Your clients may also sign a contract with us directly. If you have any questions, please contact the Information Products Management department at 312-634-8395 or email marketdata@cme.com Thank you.