The membership process starts with the filing of a membership application with Nasdaq. The exchange is contacted by the bank or investment firm (referred to as the firm in the following text), or the firm is contacted by Nasdaq. The firm is informed of the products, membership requirements, trading rules, costs and other relevant matters. The firm should be informed of all fees relating to the membership, what an exchange membership entails and which steps need to be taken before the firm can start to trade.
The application and the appendices attached are reviewed and additional information may be requested. The supervisory authority in the country of domicile and the local FSA is contacted in parallel with the internal review process. The custodian bank and local CSD are contacted as well, to ensure that the processes at the bank, CSD and at Nasdaq are coordinated.
While the application is being reviewed, the personnel who are intended to use Nasdaq's systems attend an authorization course, and Nasdaq's IT department orders the circuits, routers and servers for the firm. The estimated delivery time (for example to the circuits) is four weeks for Denmark, Finland and Sweden, and six to eight weeks for Europe. At the start of a membership process a Technical Account Manager (TAM) is also appointed for each member, who assists with IT issues related to being a member.
When it can be establish that the membership requirements of Nasdaq are fulfilled, the applying firm is presented to the management of Nasdaq. Because the exchanges within Nasdaq are separate legal entities, each exchange has to approve the membership. After approval, the date for the trading start can be decided and information on the admission of a new member can be made public. At this stage, a Key Account Manager is appointed to the member to assist in all kinds of issues related to trading on Nasdaq.