Notice of Regulation NMS-Related Market Structure Changes

February 23, 2007

On March 5, 2007, the Regulation NMS ("Reg NMS") Trading Phase will commence. By that date, all automated trading centers (both exchange trading facilities and Alternative Display Facility ("ADF") trading centers) that intend to qualify their quotations for trade through protection under Reg NMS Rule 611 during the Pilot Stocks Phase and All Stocks Phase must have begun full operation of their Reg NMS-compliant trading systems. The following related market structure changes will also take effect.

  • ADF Quoting, Trade Reporting, and Comparison of CQS Securities and Nasdaq Securities – On March 5, 2007, at 8:00 a.m. EST, CQS securities will be eligible for quoting, trade reporting, and comparison through the ADF. Accordingly, all exchange-listed securities (NASDAQ-listed and CQS-listed securities) will be eligible for quoting, trade reporting, and comparison through the ADF.

  • ADF Trading Center MPID's in UQDF – On February 26, 2007, at 8:00 a.m. EST, the NBBO data feed for NASDAQ-listed securities as consolidated and disseminated by the Nasdaq UTP Plan Securities Information Processor ("SIP"), the UQDF, will begin displaying the specific ADF trading center MPID that is setting the ADF BBO.

  • ITS/CAES System Discontinuance – On March 5, 2007, at 8:00 a.m. EST, NASD will discontinue all operations of the ITS/CAES System for CQS securities, including all ITS/CAES related connectivity and linkages.

  • ADF Trading Center Access – On March 5, 2007, at 8:00 a.m. EST, ADF trading center quotes in CQS securities will be accessible through direct and/or indirect access in accordance with ADF rules. Please refer to the specifications of the applicable ADF trading center located on NASD's ADF web page for specific quote access information.