The Hong Kong Stock Exchange (HKEX) is one of the leading financial markets of the world, offering a broad range of financial products and services. Market data vendors are an essential component of the HKEX ecosystem, providing real-time and historical data to investors, traders, and other market participants.
To ensure the integrity of its market data, the HKEX requires all market data vendors to obtain a license agreement before they can distribute the exchange`s data. The HKEX market data vendor license agreement lays down the terms and conditions that vendors must adhere to while accessing and using the exchange`s data.
The license agreement covers several critical aspects, including the scope of usage, data distribution, intellectual property rights, confidentiality, and data usage fees. Vendors must accept all these terms and conditions before they can gain access to the exchange`s market data.
The scope of usage sets out the permitted uses of the market data by vendors. The data can only be used for the purpose of trading, investment analysis, and reporting on the HKEX`s market. Vendors must seek express permission from the exchange for any other use of its market data.
The license agreement also requires vendors to acknowledge the HKEX`s intellectual property rights to its market data. Vendors cannot modify, reproduce, distribute, or sell the data without the exchange`s consent. They also cannot remove any copyright or trademark notices from the data.
To ensure the confidentiality of the HKEX`s market data, vendors must have appropriate technical and organizational measures in place to protect the data from unauthorized access, use, or disclosure. The exchange reserves the right to audit vendors` systems and procedures to ensure compliance with this requirement.
The license agreement also sets out the basis for data usage fees. Vendors must pay the HKEX a fee for the right to use its market data. The fees vary based on the type of data accessed, the frequency of usage, the distribution channels, and other factors.
In conclusion, the HKEX market data vendor license agreement is a critical document that sets out the terms and conditions for accessing and using the exchange`s market data. Vendors must comply with all the requirements of the agreement to ensure the integrity and confidentiality of the data and avoid any legal repercussions.