This document is intended to clarify the conditions under which an individual may qualify for the Non-Professional Subscriber rates for exchange Market Data products. Distributors are required to verify the status of any subscriber applying to receive data at the Non-Professional Subscriber rate.
If the exchanges finds that the vendor has incorrectly qualified a professional subscriber as non-professional, the vendor will be liable for retroactive fees billed by the exchanges for the subscriber at the professional rate.
“Non-professional Subscriber" refers to any natural person who receives market data solely for his/her personal, non-business use and who is not a “Securities Professional,” meaning that the person is:
not registered or qualified with the Securities and Exchange Commission, the Commodities Futures Trading Commission, any state securities agency, any securities exchange/association, or any commodities/futures contract market/association; an
not engaged as an "investment advisor," as that term is defined in Section 202(a)(11) of the Investment Advisers Act of 1940 (whether or not registered or qualified under that Act); and
not employed by a bank or other organization exempt from registration under Federal and/or state securities laws to perform functions that would require him/her to be so registered or qualified if he/she were to perform such functions for an organization not so exempt.
A person who works outside of the United States will be considered a “Securities Professional” if he or she performs the same functions as someone who would be considered a “Securities Professional” in the United States.
Subscriber may not receive Market Data as a “Non-professional Subscriber” unless the vendor providing that data to Subscriber first determines that the individual falls within the above definition of “Non-professional Subscriber.”
Can a day-trader qualify as a non-professional?
A day-trader can qualify as a Non-professional if he/she is managing his/her own money AND:
Are large traders always qualified as Professionals?
If a large trader otherwise meets the definition of “Non-professional Subscriber,” the large trader does not lose his or her “Non-professional Subscriber” status merely because he or she falls within SEC Rule 13h-1(a)’s definition of “large trader”.