finra

FINRA

For Release:
Contacts:
Thursday, March 14, 2002
Nancy A. Condon
202-728-8379
Michael Shokouhi
202-728-8304
NQLX Contact: Ray Carmichael
312-346-2002


NASD and Nasdaq Liffe Markets Sign Regulatory Services Agreement

Boca Raton, FL — The National Association of Securities Dealers (NASD) today announced that it has signed a five-year agreement to provide an integrated suite of regulatory services to Nasdaq Liffe Markets (NQLX). NQLX is the joint venture between The Nasdaq Stock Market and the London International Financial Futures and Options Exchange to create a marketplace for the trading of security futures products, which includes futures on U.S. equities and narrow-based indices, and broad-based indices on U.S. equities. The announcement was made during the Futures Industry Association Annual Conference in Boca Raton, FL.

 

As part of the agreement, the NASD will provide NQLX with the following:

 

  • Post-trade market and trade practices surveillance services;

  • Financial and operational surveillance;

  • Formal disciplinary action services;

  • Formal dispute resolution services;

  • Member application review services;

  • Routine and cause examinations/investigations; and

  • Central Registration Depository (CRD) administration services.

"This gives the NASD an opportunity to apply our unparalleled regulatory expertise and systems to the area of futures in addition to the equity markets," said NASD Chairman and CEO, Robert Glauber.

 

"NASD has enhanced many of its existing technology solutions and has developed product-specific expertise within its existing Market Regulation and Member Regulation Departments. This promotes our goal, to become the regulatory services provider of choice to financial markets, exchanges and regulators."

 

In preparation for this contract, the NASD has hired De'Ana H. Dow as Director and Chief Counsel, Futures. Ms. Dow is a recognized expert in the regulation of futures markets, particularly single stock futures markets that are being created as a result of the regulatory reforms contained in the Commodity Futures Modernization Act of 2000. She will be responsible for matters related to futures self-regulatory services. Until recently, Ms. Dow held the positions of Special Advisor and Counsel to the Chairman at the Commodity Futures Trading Commission.

 

The NQLX contract is the third in NASD's larger effort to offer regulatory services to financial markets worldwide. NASD's spectrum of regulatory and surveillance services are currently employed at the Nasdaq Stock Market and the International Securities Exchange. In addition to outsourcing of regulatory services, NASD offers consulting, including diagnostic analysis, in the areas of regulatory policy, process and technology. The NASD regulates the nation's securities industry and oversees virtually all U.S. stockbrokers and brokerage firms.

 

The National Association of Securities Dealers, Inc. is the largest securities industry, self-regulatory organization in the United States,. It is the parent organization of NASD Regulation, Inc.; the American Stock Exchange, LLC; and NASD Dispute Resolution, Inc. For more information about the NASD and its subsidiaries, please visit the following Web sites: www.nasd.com; www.nasdr.com; www.amex.com; www.nasdadr.com.