Capital Market

NSE Charges $25,000, N1.2 Million on Market Data

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By Peter OBIORA InvesAdvocate

Lagos (INVESTADVOCATE)-The Nigerian Stock Exchange (NSE) Friday confirmed it will charge $25,000 and N1.2 million per annum for those seeking to redistribute real-time international and local data respectively.

Oscar Onyema, Chief Executive Officer (CEO) of the NSE made this affirmation at the Exchanges market data interactive forum with the media and capital market analysts.

”25,000 and N1.2 million for international and local vendors respectively as charges, we have tailored it in such a way that it’s actually cheaper for the local vendors,” he said.

Onyema said its only price lists that can redistributed for free; but those seeking to this must seek permission from the NSE.  ”If you redistribute the data, without licence or permission, you are violating our rules; there are two agreements to be signed for Dealing Member/Brokers to redistribute the price list for free,”Onyema said.

He further affirmed that for delayed-time feeds via a network service provider will be charged $20,000 and N1.0 million per annum for international and local data vendors respectively.

According to him, only dealing members and the media will be allowed to redistribute only the price list without charges.

”What are we going to be reinforcing, every media house should have a contract with the Exchange and it’s a standard contract, that contract is available on our website,” Onyema said.

He said because of intellectual property right and the need to have structure around the redistribution of market data and all the global conventions which the NSE signed unto, it is critical that the media sign a contract with the Exchange to continue what they are doing.

”What we are trying to do is to provide structure and standardize the redistribution of data so that investors that want to use the data will know exactly what they are getting, when they are going to get it and the quality of what they are getting,” Onyema said.

With regards to enforcement, the NSE CEO said the Exchange Council put July 01 2013 to start it; but due to some reason, they are soft peddling on it for now and would want to create more awareness to this regard.

According to him, 12, market data vendors have signed contracts with the Exchange and still counting with about 39 market data products by the NSE.

Late March 2013, the NSE had announced it will charge about $5,000 to Operators who seek to make use of data emanating from the Stock Exchange

Ade Bajomo, Executive Director (ED), IT and Market Operations disclosed this at a Media Parley to clarify issues on the recent ban on Operators in the Nigerian Capital Market to stop the daily dissemination of Capital Market information to clients and investors.

According to Bajomo, Market Data comes in differently; it depends on what the data is meant to be used.

”For Brokers, if they want to distribute the data, the global standard is $20,000; plus a fee for user, we are saying for $5,000, you can distribute up to ten different reports at no additional costs, and you can distribute it to one million or 20 million people and we think that actually is a very positive move. If you don’t want to pay a penny, you still have a choice, just put the NSE’s link in whatever you are sending out,” Bajomo said.

Prior to this time, a Lagos based Investment Lawyer; Barrister Bisi Iyaniwura in an interview with InvestAdvocate faulted policy to sell data by the NSE declaring it as illegal.

 

According to him, the NSE doesn’t have the legal mandate to embark on what they are planning, ”in the first instance, the question we need to ask ourselves is who the owner of the data is? It’s not the Nigerian Stock Exchange,” he said.

 

Barrister Iyaniwura affirmed the NSE has only provided the platform for the production of the data which belongs to the Stockbrokers who are the Market Operators.

 

”Another question is who owns the Stock Exchange? It’s the Brokers, if there are no Brokers, there will be no Stock Exchange; so if these data are being produced by virtue of the interaction and interplay of the activities of the Stockbrokers, how can you tell them to pay for what they producer, its illegal and there is nowhere in the world that Stockbrokers pay for data they produce themselves,” Barrister Iyaniwura said.

 

”I challenge them to tell me anywhere in the world that Stockbrokers pay for data they produce themselves,” he said.

 

Barrister Iyaniwura said investors have the right to transparency in the Market and should get Market data prompt and regularly.

 

Related Article

1. NSE Earmarks $5,000 Fees on Market Information

 

2. NSE’s Planned Data Sales Illegal-Investment Lawyer

 

Below is the market data products and pricelist from the NSE

 

Market Data Products and Pricelist

 

 

1. Real-time feeds NSE MDF: Raw data feeds provided to authorized clients, directly from the trading platform. Authorized clients get connected to the trading platform via connection ports provided by the NSE and allowing all raw data generated during a trading day pass through to these clients on a real time basis. This service is made available to all major data distributors i.e. data vendors etc.

Cost

Local

International

N1, 200, 000

$25, 000

2. Delayed Real-time Feeds via a network service provider: This is similar to the real-time feeds, however, the feeds will be delivered on timely intervals. An authorized NSP will receive the data from the NSE via the MDF and distribute the data to other authorized clients of the NSE to receive delayed real-time feeds.

Cost

Local

International

N1, 000, 000

$20, 000

3. End of Day feeds: This feed is delivered at the end of every trading day, via an FTP site where the client receives the data in a format that is specified and agreed on by both parties. This service can be made available to parties like data aggregators, data distributors and not necessarily vendors.

Cost

Local

International

N800, 000

$15, 000

4. Website reports: These are reports that are made available online via the NSE website data portal. The reports can be available through the following intervals:

  • Real-time: these are reports available on the NSE website real-time, hence displaying all transactions as they occur.
  • EOD: these reports are available at the end of every trading day and are available for download on the NSE website a few moments after trading ends.
  • Historical: these consist of reports that provide information on an annual historical period.

Some of the NSE website reports include:

NSE Equity Level 1 Real-time and Historical: is a report that provides snap shot of the Equity market and can either be available real time or historical. This data product contains (ISIN Code, Symbol, Security Name, Market, Sector, Traded Volume, Traded Value, Number of Transactions, Nominal Value, Price open, Price High, Price Low, and Current Value).
Cost: N35, 000 for real time / live view of the market and N45, 000 for 1 years worth of historical.

NSE Equity Level 2 Real-time and historical: is a more detailed report of the equity market with added features such as real time and historical display of (VWAP, Date Traded, Upper Circuit Limit, Lower Circuit Limit, Turnover Value, Relative Performance over a period of time, Total Buy Quantity, Total Sell Quantity, Top Volume, Bottom Volume, Total Market Cap, Top Market Cap, Bottom Market Cap, Top & Bottom 5 Trades per Volume & Value, Top & Bottom 5 Sectors per Volume & Value) inclusive of items in level 1.
Cost: N45, 000 for real time display and N55, 000 for 1 years worth of historical.

NSE Trading Floor Level 1 real-time: is a report that allows subscribers to view live trades directly on the NSE website. Users simply log into the website and are able to view the trades as they are being executed. Contents in this product include (Symbol, Company Name, Buy“ Price, Sell  Vol, Sell Price, Total Vol Traded, Avg. Price, high Price, low Price, Net Change).
Cost: N50, 000 for real time access and N60, 000 for 1 year worth of historical.

NSE Trading Floor Level 2 real-time and historical: is a more advanced version of level 1 allowing brokers the ability to print their statements either real time or historical. Inclusive of level 1 items, this product contains (Symbol, Company Name, Buy Vol, Buy Price, Sell “ Vol, Sell  Price, Total Vol Traded, Avg. Price, high Price, low Price, Net Change).
Cost: N70, 000

NSE Performance Management real-time: is a report that provides comprehensive and comparative market information for all traded securities on the Exchange, information contains; (Equity & Bond Total Volume and Value % Changes, Mergers, Acquisitions and Takeovers, No. of days traded YTD, No. of Listed Cos, Movement in stock prices, No. of New Issues, ASI, NSE 30, Sectoral Indices % Change, no. of registered brokers vs Active brokers, Avg. Trading Vol./Val./No. of Transactions, top & bottom 5 sectors per value, volume and Market Cap.).
Cost: N50, 000 for real time access and N65, 000 for 1 years worth of historical.

NSE Indices real-time: is a report that provides comprehensive information about all the indices on the NSE market which include ASI, NSE30, Food&Bev, Banking, Insurance, Oil&Gas. The information contained in the product include (Category, Open, High, Low, Close, 52wk Hi, 52wk Lo, Market Cap, % to total Market Cap, Market Cap Contribution, Indices Turnover, % to Total Turnover Relative Performance).
Cost: N50, 000 for real time access and N50, 000 for 1 years worth of historical.

NSE Custom Select historical: is a report that allows subscribers to select and build customized data reports online. Users can build their own package by purchasing pieces of data required rather than simply purchasing packages. The cost will be based overall on the number of requests.
Cost: N400 per item and N50 per company and includes a maximum of 10 items and 100 companies.

NSE Historical Prices: is a report that provides information on adjusted historical prices for one particular security over a period of time, this product contains (Symbol, Company Name, Date, Close Price, Adjusted Close Price, Vol. Traded, Val Traded).
Cost: N30, 000

NSE Historical: is a report that allows subscribers have access to any data historical over a period of time this product includes (Symbol, Company Name, Date, Total Vol., Total Val, Total no of Transactions, Total Market Cap).
Cost: N35, 000

Other reports available on the website include EOD reports such as:

  • Daily official listing on bonds
  • Daily official listings on equities
  • Market capitalization
  • Published results
  • P.e. Ratios
  • Trading statistics
  • Capnet files

5. Tailored reports: These are reports available through individual requests and are tailored to the clients request.

Other Services Include:

6. Index Creation: There are three models potential clients can utilize this opportunity and these include:

  • Model 1:

Potential clients can simply purchase the NSE market data to derive an index. The clients would subscribe to the product, by acquiring a licence fee, which will allow them receive the NSE market data and derive an index from the data. This licence only grants the client permission to derive an index off the NSE data and nothing else.

The potential clients can either receive the data directly from the NSE or an authorized distributor i.e. Six telekurs, IDC etc.

Cost: $20,000

  • Model 2:

Potential clients can partner with the NSE and create a joint index. With this option, both parties will be responsible for the cost of developing the index. After the development, the full cost will be deducted from the revenue with the additional income split between both parties. In this model the NSE will include the full cost of development in addition to the cost of the market data.

Cost: $10,000

Profits here can be derived from relicensing the index to potentials who may wish to use as is or may derive another product such as an ETF from the index. This leads to the third model of:

  • Model 3:

Potential clients may wish to purchase the partnered index, (NSE Model 2, Index) at a proposed or agreed amount by both parties of the index and derive a product off it. I.e. the NSE/Bloomberg index, at a proposed amount of $15,000 plus 8 bps of AUM (additional 0.08% for asset underlying management).

Potential clients will be required to pay for the licence fee, in action to the technology cost of development and an additional 0.08% of product derived.

With the creation of these products, the prospected clients according to the NSE data product terms, distribution addendum section 7, each client must include a statement or acknowledgement that the Nigeria Stock Exchange is the source of the Information on every webpage or display source of the company product where the Information is displayed. A potential client may not use any trademark of the Nigerian Stock Exchange on any web Information display unless it has entered into a licensing agreement to use the trademark.

7. Website display of Delayed or EOD Indices (ASI, NSE 50, NSE 30, Banking, Consumer Goods, Insurance, Oil & Gas, NSE/Lotus Sharia): $ 4,500

8. TV ASI EOD display: $960 Per annum

 

 

 

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