The Nasdaq Stock Market, Inc.2002 Market Data Initiatives

FISD General Session

June 17, 2002

Nasdaq Market Data Initiatives

• SuperMontage Data Products

• Securities Information Processor (SIP) changes

• Market Data Network Introduction

SuperMontage

• New Nasdaq trading system

• New data products leverage enhanced capabilities of SuperMonatge– Multiple orders/quotes per market participant– Unattributed orders/size

• ViewSuite: Four data package options available through market data distributors

ViewSuite Package - QuoteView

• Best bid and offer from each Nasdaq market participant including “SIZE” – unattributed order depth

• Replaces Level 2

• No quotes from exchanges not participating in SuperMontage

• Data accessed through NQDS data feed

QuoteView Display SampleSymbol: CSCO Cisco Systems Inc. Nasdaq National Mkt

Nasdaq BBO: 19.98 Q 19.99 Q 61 x 15

MPID Bid Ask Size MPID Bid Ask SizeGVRC 19.98 20.05 10 x 10 PIPR 19.85 19.99 1 x 10BTRD# 19.98 20.00 21 x 10 SIZE# 19.98 19.99 10 x 5SIZE# 19.98 19.99 10 x 5 CHIP 10.00 20.00 1 x 1 SLKC 19.98 20.25 10 x 8 DAIN 19.50 20.00 10 x 10SNDV 19.98 20.13 10 x 1 FBCO 19.90 20.00 1 x 10MKXT# 19.97 5 x 0 MWSE 19.83 20.00 5 x 7PRUS 19.97 20.17 10 x 10 BTRD# 19.98 20.00 21 x 10SBSH 19.97 20.03 1 x 1 SCHB 19.90 20.00 10 x 5WCHV 19.97 20.00 1 x 1 UBSW 19.65 20.00 1 x 4MLCO 19.97 20.00 1 x 1 WCHV 19.97 20.00 1 x 1BRUT# 19.96 20.02 11 x 7 ABNA 19.82 20.01 1 x 50NITE 19.96 20.03 1 x 1 BRUT# 19.96 20.02 11 x 7BARD 19.95 20.15 10 x 1 GSCO 19.95 20.03 10 x 10GSCO 19.95 20.03 10 x 10 NITE 19.96 20.03 1 x 1NDBC 19.95 20.04 10 x 10 SBSH 19.97 20.03 1 x 1JPHQ 19.94 20.05 1 x 1 WCAI 19.93 20.03 10 x 10WCAI 19.93 20.03 10 x 10 …… NDBC 19.95 20.04 10 x 10FBCO 19.90 20.00 1 x 10 GVRC 19.98 20.05 10 x 10SCHB 19.90 20.00 10 x 5 JPHQ 19.94 20.05 1 x 1PIPR 19.85 19.99 1 x 10 SNDV 19.98 20.13 10 x 1MWSE 19.83 20.00 5 x 7 BARD 19.95 20.15 10 x 1ABNA 19.82 20.01 1 x 50 PRUS 19.97 20.17 10 x 10UBSW 19.65 20.00 1 x 4 SLKC 19.98 20.25 10 x 8DAIN 19.50 20.00 10 x 10 MKXT# 19.97 5 x 0

Listing MC:

ViewSuite Package – DepthView

• New product entirely based on data that flows out of SuperMontage

• Aggregated size of all quotes and orders at each of the top five price levels on the bid and on the offer

• No attribution of the quotes/orders to specific market participants

• Aggregate sizes can include multiple quotes/orders from a single market participant in a stock

• Data accessed through Aggregated Depth at Price (ADAP) data feed

DepthView Display Sample

Symbol:

Rank Bid Price Aggregated Size

Ask Price Aggregated Size

1 19.98 61 19.99 152 19.97 58 20.00 833 19.96 82 20.01 1084 19.95 51 20.02 385 19.94 81 20.03 59

Listing Market: Nasdaq National MarketCSCO - Cisco Systems Inc.

ViewSuite Package - PowerView

Combination of QuoteView and DepthView

Available on Nasdaq Workstation and through market data distributors

Provides current Level 2 customers an opportunity to enhance the data they receive today with the DepthView data at a discount to the stand-alone price of each individual data product

PowerView Display SampleSymbol: CSCO Cisco Systems Inc. Nasdaq National Market

Bid Price Total Depth

Depth Shown

Ask Price Total Depth

Depth Shown

1st Level: 19.98 61 (61) 19.99 15 (15)

2nd Level: 19.97 58 (18) 20 83 (48)

3rd Level: 19.96 82 (11) 20.01 108 (50)

4th Level: 19.95 51 (30) 20.02 38 (7)

5th Level: 19.94 81 (11) 20.03 59 (22)

MPID Bid Ask Size MPID Bid Ask SizeSNDV 19.98 20.13 10 x 1 PIPR 19.85 19.99 1 x 10SIZE# 19.98 19.99 10 x 5 SIZE# 19.98 19.99 10 x 5BTRD# 19.98 20.00 21 x 10 MWSE 19.83 20.00 5 x 7SLKC 19.98 20.25 10 x 8 DAIN 19.50 20.00 10 x 10GVRC 19.98 20.05 10 x 10 CHIP 10.00 20.00 1 x 1 MKXT# 19.97 5 x 0 BTRD# 19.98 20.00 21 x 10SBSH 19.97 20.03 1 x 1 FBCO 19.90 20.00 1 x 10WCHV 19.97 20.00 1 x 1 SCHB 19.90 20.00 10 x 5PRUS 19.97 20.17 10 x 10 UBSW 19.65 20.00 1 x 4MLCO 19.97 20.00 1 x 1 WCHV 19.97 20.00 1 x 1BRUT# 19.96 20.02 11 x 7 ABNA 19.82 20.01 1 x 50NITE 19.96 20.03 1 x 1 BRUT# 19.96 20.02 11 x 7GSCO 19.95 20.03 10 x 10 SBSH 19.97 20.03 1 x 1NDBC 19.95 20.04 10 x 10 WCAI 19.93 20.03 10 x 10BARD 19.95 20.15 10 x 1 GSCO 19.95 20.03 10 x 10JPHQ 19.94 20.05 1 x 1 NITE 19.96 20.03 1 x 1WCAI 19.94 20.03 10 x 10 …… BARD 19.95 20.15 10 x 1ABNA 19.82 20.01 1 x 50 PRUS 19.97 20.17 10 x 10UBSW 19.65 20 1 x 4 SLKC 19.98 20.25 10 x 8DAIN 19.50 20 10 x 10 MKXT# 19.97 5 x 0

Listing MC:

ViewSuite Package - TotalView• Includes QuoteView and DepthView

• Additional data - the details behind DepthView (Nasdaq Prime)

• Attributed specific quotes/orders at each of the top five price levels

• Anonymous “SIZE” identifier for an aggregate of all anonymous quotes/orders at each of the top five price levels

• A premium data product offering for the most active Nasdaq trading and investing professionals

• Data accessed through Nasdaq Prime data feed

TotalView Display SampleSymbol: CSCO Cisco Systems Inc.

Bid Price

Total Depth

Ask Price

Total Depth

1st Level: Q 19.98 61 19.99 152nd Level: 19.97 58 20.00 833rd Level: 19.96 82 20.01 1084th Level: 19.95 51 20.02 385th Level: 19.94 81 20.03 59

MPID Bid Price Bid Size MPID Ask PriceAsk SizeGVRC 19.98 10 PIPR 19.99 10BTRD# 19.98 21 SIZE# 19.99 5SIZE# 19.98 10 CHIP 20.00 1SLKC 19.98 10 DAIN 20.00 10SNDV 19.98 10 FBCO 20.00 10MKXT# 19.97 5 MWSE 20.00 7PRUS 19.97 10 PIPR 20.00 15

BTRD# 19.97 5 BTRD# 20.00 10SBSH 19.97 1 SCHB 20.00 5SIZE# 19.97 25 SIZE# 20.00 20SLKC 19.97 10 UBSW 20.00 4WCHV 19.97 1 WCHV 20.00 1MLCO 19.97 1 ABNA 20.01 50BRUT# 19.96 11 FBCO 20.01 15NITE 19.96 1 BTRD# 20.01 9

SLKC 19.96 5 SCHB 20.01 10PRUS 19.96 10 SIZE# 20.01 24SIZE# 19.96 55 BRUT# 20.02 7BARD 19.95 10 FBCO 20.02 10GSCO 19.95 10 SCHB 20.02 5NDBC 19.95 10 SIZE# 20.02 16PRUS 19.95 5 BRUT# 20.03 10SIZE# 19.95 10 FBCO 20.03 5SLKC 19.95 6 GSCO 20.03 10BARD 19.94 10 NITE 20.03 1

BRUT# 19.94 5 PIPR 20.03 7GSCO 19.94 5 SBSH 20.03 1JPHQ 19.94 10 SIZE# 20.03 15PRUS 19.94 10 WCAI 20.03 10

BTRD# 19.94 10 …SIZE# 19.94 26 SNDV 20.13 1SLKC 19.94 5 BARD 20.15 1

… PRUS 20.17 10DAIN 19.50 10 SLKC 20.25 8

(NNM)

Marketing Support of ViewSuite

• Print Ads– Registered Rep, Securities Industry News,

Institutional Investor, Trader

• Direct mail

• Sitelet – www.viewsuite.nasdaqtrader.com

• Subscriber sales

• Vendor education

Vendor Support of View Services

• Ameritrade Pro• Bloomberg• Cybertrader• Datek• eSignal• Hyperfeed• ILX Systems• LAVA

• RediProducts• Reuters• S&P Comstock• Sungard/BRASS• Swifttrade• Townsend• Track Data• Tradescape

ViewSuite PricingMonthly per user/device

Currently Under Review by SEC

Professional Non-professional

QuoteView $40 $9

DepthView $50 $25

PowerView $75 $29

TotalView $150 $150

ViewSuite PricingDistributor Fees

• Currently Under Review by SEC • Distribution by a Nasdaq member

– DepthView/PowerView only - $1,000/month

– TotalView - $10,000/month with 66 free displays

• Distribution by a non-member– DepthView/PowerView only - $1,000/month

– TotalView - $30,000/month with 200 free displays

SIP Changes

• Nasdaq is SIP for UTP Plan• Current data feed products carry both

UTP/SIP data and Nasdaq proprietary data• SIP Initiative creates new “pure” SIP feeds• Need for separate feeds:

– Capacity– Support of NASD Alternative Display Facility– Nasdaq exchange registration

Entitlement – SIP/Level 1

• Pricing stays the same• Addition of exchange BBOs• Changes to Short-Sale Bid Tick• Includes SIP and Nasdaq Proprietary Data:

– National BBO for Nasdaq issues– OTCBB/Other OTC information– Indexes– Mutual Funds

Data Feed Changes – SIP/Level 1

• Nasdaq-listed quote and trade data to be offered on new UTP Quote and Trade feeds

• Nasdaq-listed quote and trade data to be removed from Level 1 and NTDS

• Parallel Period – New UTP feeds start 7/1/2002– Distributor Production can begin 7/15/2002– Parallel period ends 9/25/2002

Market Data Network (MDN)

• MDN offers:– Support for IP multicast data feed applications.– Adequate capacity to handle Nasdaq’s projected

message traffic rates for new and existing data feeds through 2003.

– Multiple configuration options to meet individual customer needs.

– Scalability to grow as data feed message rates increase or new products are introduced.

– High level of network management and redundancy.

MDN Ordering Information• To obtain an ordering packet, please contact

WorldCom Global Account Team at (800) 825-9196.– Orders will be handled on a first come, first

served basis. – Allow a minimum of 30 business days for

processing. – When ordering, please indicate if you have any

special installation requirements.

MDN Subscriber Status

• All major Market Data Vendors and Market Makers have placed orders

• 138 Sites have placed MDN orders– 73 Sites have completed installation

– 78% of legacy sites have placed orders

UTP/SIP Release & Test Schedule

Data Feeds UTP Quote Data Feed (UQDF)UTP Trade Data Feed (UTDF)

Evening Format Testing Tuesday, May 28, 2002 to Friday, June 28, 2002

UATs Saturday, June 15, 2002Saturday, June 22, 2002Saturday, June 29, 2002

Production Release Test Only Period Begins Monday, July 1, 2002 Redistribution Allowed Monday, July 15, 2002Intra-Day Test Symbols Monday, July 1, 2002 to

Friday, July 14, 2002

UTP/SIP Release & Test Schedule

Data Feed OTC Montage Data Feed (OMDF)Evening Format Testing Tuesday, May 28, 2002 to

Friday, June 28, 2002UATs Saturday, June 15, 2002

Saturday, June 22, 2002Saturday, June 29, 2002

Production Release/ Monday, July 1, 2002 Redistribution AllowedIntra-Day Test Symbols Monday, July 1, 2002 to

Friday, July 14, 2002

SuperMontage Data Feed Release & Test Schedule

Data Feed Aggregated Depth at Price (ADAP)Evening Format Testing Monday, April 15, 2002 -

Friday, July 26, 2002UATs The following Saturdays:

June 15 and 29, 2002 July 6 and 13, 2002

Production Release Data Feed Available Monday, July 29, 2002 Security Phase-In Begins Monday, August 5, 2002Intra-Day Test Symbols Monday, July 29, 2002 to

Friday, August 2, 2002

SuperMontage Data Feed Release & Test Schedule

Data Feed Nasdaq PrimeEvening Format Testing Monday, June 3, 2002 to

Friday, July 26, 2002UATs The following Saturdays:

June 15 and 29, 2002 July 6 and 13, 2002

Production Release Data Feed Available Monday, July 29, 2002 Security Phase-In Begins Monday, August 5, 2002Intra-Day Test Symbols Monday, July 29, 2002 to

Friday, August 2, 2002