I N THIS EDITION U PCOMING E VENTS

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1 Market Information NEWS I N THIS EDITION NOVEMBER 2002 CATEGORY ITEM PAGE Key topics: 1. Open Letter 2. Policy Guidelines Updated Market Information Amnesty and Pricing Policy Guidelines Open letter to clients 2 Updated version available on ASXtra 5 Peter van Steensel (02) Frank Hoer (02) Jason Keady (02) U PCOMING E VENTS DATE EVENT 31 Dec 2002 EXPIRY OF AMNESTY PERIOD (REFER ASX MARKET INFORMATION POLICY GUIDELINES) Seamus Collins (02)

2 ASX MARKET INFORMATION AMNESTY AND PRICING At ASX we are committed to ensuring our equities and derivatives markets remains world class and meet your informational, trading, clearing and settlement requirements. ASX has had a number of direct market enquiries and issues raised in relation to the pricing for ASX market data and the Market Information Policy Guidelines. This letter is a response to those issues so that all customers of receive the same message. It also serves as an opportunity to remind customers that the amnesty, in place since April 2002, ends on 31 December ASX has two options for payment of continuous enquiry fees for market data: 1. Devices capable of accessing ASX data This applies where vendor or other software is installed on a specific computer or device that makes the device capable of accessing ASX market data. The unit of count is the number of devices with this software installed. 2. End users capable of accessing ASX data ASX also allows usage reporting based on the number of end users able to access ASX market data, provided: each end user has their own separate and unique user ID and password that is not shared; the system will not allow simultaneous access to data by the same user ID/password. The unit of count is the number of unique end users that are enabled or permissioned to access ASX market data. We also accept actual usage where systems are capable of tracking it. This option is helpful where a vendor or customer system is not able to track devices that have enabling software installed (for example, in the internet environment). Ultimately, pricing as between vendors and their respective customers is a matter for the vendor to determine. This letter is intended to provide clarification of the basis on which ASX charges its direct customers (which include information vendors and brokers) for market data. Market Information News 04/02 Page 2 of 5

3 Market Information Policy Guidelines ASX has had a longstanding policy that concurrent usage 1 is not an acceptable means of reporting the use of ASX market data, and in particular, the reporting of monthly continuous enquiry fees. ASX Market Information published Policy Guidelines in April 2002 confirming this position in the context of current technological developments. This approach is consistent with the world s leading exchanges including NYSE, NASDAQ, Deutsche Bourse, Tokyo SE, HKSE, and Toronto SE. Some information vendor services, however, operate in a way that enables multiple end users to share or contend for access to a smaller number of vendor licences. We support this business model provided vendors properly account to ASX for the use of market data in either of the two ways outlined above. Amnesty closes on 31 December 2002 As part of the Policy Guidelines, we announced a moratorium on collecting back payments associated with under-reporting of market data usage. The moratorium s aim was to provide an environment where we could speak openly about the current pricing structure so that opportunities for improvement could be identified. This moratorium will end on 31 December. If you are aware or suspect that licence sharing may be occurring within your organisation, we encourage you to contact either your vendor or ASX Market Information for more information and clarification. To recap, during the amnesty period, ASX will waive any short fall in ASX market data fees as a result of incorrect or non-compliant data usage reporting, provided customers approach us before 31 December and outline in detail the areas of non-compliance. All customers, however, must be compliant from 1 January ASX will commence an audit program in the first half of If these audits identify any errors or non-compliant reporting of ASX data usage from customers that have not contacted ASX and detailed their non-compliance under the protection of the amnesty, ASX will seek full reimbursement of fees and the costs of the audit. Other pricing models Based on our market consultation, the majority of issues concerning licence sharing arise in the context of casual or infrequent users within the professional environment, and mainly those who are involved in corporate or back office type functions. We currently provide a range of pricing options that are available to address the needs of casual users. These include: time-based pricing at 2.3 cents per minute (excl. GST) that includes access to both equities and derivatives data; 1 Concurrent usage or licence sharing is where more than one person is able to access a single vendor logon. For example, where 20 people contend for access to 10 vendor licences across a network and only 10 of the 20 can access the services at any point in time. Market Information News 04/02 Page 3 of 5

4 two single enquiry options that may be used in conjunction with data streaming technologies; and 20 minute delayed data without enquiry charges. We encourage you to discuss these options with your vendor. In addition, we have been investigating new corporate billing models, namely: 1. Direct Billing This is similar to the exchange models in the US and involves direct payment of market data fees to ASX instead of through the data vendor. Initially, we will offer this option to ASX Participating Organisations that have in excess of 50 internal devices or end users of ASX market data. Naturally, direct billing arrangements will be subject to Participating Organisations having appropriate measures in place (either in-house or vendor systems) to correctly track and report market data usage to ASX. This model will be implemented in a way that is intended to reduce market data administration for both our customers and us. We are also examining ways in which this model can be used to rebate a proportion of market data fees where an end user has access to more than one vendor application on their desktop and are paying multiple ASX market data fees. 2. Enterprise Licences We are also considering enterprise licences for customers with more than 200 internal devices or end users capable of accessing ASX data. An enterprise licence may be negotiated that provides a licence for internal use of ASX market data in one predetermined charge. The charge will be based on a number of metrics that collectively define the firm s data usage patterns. More information If you wish to discuss these issues, make any suggestions concerning enterprise licences or any other alternative, or obtain a copy of the Policy Guidelines, please contact Frank Hoer on (02) or Jason Keady (02) Yours sincerely, Peter van Steensel National Manager, Market Information Market Information News 04/02 Page 4 of 5

5 2. POLICY GUIDELINES UPDATE AVAILABLE ON ASXtra An updated version of the ASX Market Information Policy Guidelines is available on both ASXtra and ASX-Online. Changes that have previously been announced in Market Information News have now been incorporated in the body of the document. These changes include the capping of equities only time based users at the rate of $35 per month as well as a change to the time period during which single enquiry and time based usage needs to be accounted for, previously 07:00 17:05 now 09:30 to 17:05 (applicable to those customers that have also entered into a delayed data licence). If you have any queries concerning these developments, please do not hesitate to contact us. Market Information News 04/02 Page 5 of 5