News Release

NASD Names CFTC Chairman Mary L. Schapiro to Head New Regulatory Subsidiary

Washington, DC - The National Association of Securities Dealers, Inc. (NASD®) today announced that Mary L. Schapiro, the Chairman of the Commodity Futures Trading Commission (CFTC), will become the President of NASD Regulation, Inc.SM, a to-be-created independent operating subsidiary of the NASD that will be responsible for regulating the broker/dealer profession. Ms. Schapiro's appointment is expected to become effective in January 1996.

The creation of the new subsidiary is one of several major recommendations made by an NASD Select Committee on Structure and Governance headed by former Senator Warren Rudman of New Hampshire. This recommendation and others were approved by the NASD Board of Governors at its November meeting. The NASD Regulation and The Nasdaq Stock MarketSM subsidiaries will be headed by full-time presidents elected by the subsidiary boards, subject to ratification by the NASD Board.

"Mary Schapiro is on of the nation's most respected and experienced regulatory officials," said Joseph R. Hardiman, NASD President and CEO. "For more than a decade she has been a leading architect of increased oversight and regulation of the growing American and international securities markets, enabling growth and protection to go hand in hand for every investor."

"I am looking forward to leading an organization that plays such a vital role in protecting securities investors and the public interest," said Mary Schapiro. "The changes now underway at the NASD and the commitment of added resources will place the NASD at the forefront of effective self-regulation."

"Under Ms. Schapiro's leadership, NASD Regulation will continue the NASD's mandate to regulate fairly, America's broker/dealers and the securities markets operated by the NASD. We expect she will build on our existing regulatory team—which we have committed to expand with more staff and financial resources in the coming year," Hardiman said.

Ms. Schapiro became Chairman of the CFTC in October 1994, following her appointment by President Clinton. The CFTC is the federal agency responsible for regulating U.S. futures markets.

Prior to joining the CFTC, Ms. Schapiro served for six years as a Commissioner of the Securities and Exchange Commission, including a period as Acting Chairman in 1993. She was appointed an SEC Commissioner by President Reagan in 1988 and re-appointed to a five-year term by President Bush in 1989.

Throughout the 1980s, Ms. Schapiro was involved in a wide array of regulatory reviews of the securities industry. As Chairman of the SEC Task Force on Administrative Process, she directed the development of the task force's report, "Fair and Efficient Administrative Proceedings," which was released in February 1993. The report focused on reviewing and revising the agency's rules for administrative proceedings and implementation of the agency's new enforcement powers. Ms. Schapiro also acted as the SEC liaison to the U.S. Working Group of the Group of Thirty on clearance and settlement matters.

Before joining the SEC, Ms. Schapiro was General Counsel and Senior Vice President for the Futures Industry Association (FIA), an organization of brokerage firms, domestic and international futures exchanges, banks, law and accounting firms, and market users. Ms. Schapiro joined the FIA in 1984 and focused on regulatory, tax, legislative, and international issues during her tenure there.

Ms. Schapiro began her career at the CFTC in 1980 as a Trial Attorney in the Manipulation and Trade Practice Investigations Unit of the Enforcement Division, and later (1981-1984) served as Counsel and Executive Assistant to the agency's Chairman.

Ms. Schapiro received her JD degree from George Washington University with honors and her BA degree from Franklin and Marshall College. She is a member of the District of Columbia bar and the American Bar Association.