News Release

Merrill Lynch Chief Executive Dan Tully Elected NASD Chairman

Washington, DC--The National Association of Securities Dealers, Inc. (NASD), the parent organization of the newly created NASD Regulation, Inc., and The Nasdaq Stock Market, Inc., today announced the election of Daniel P. Tully, Chairman and Chief Executive Officer of Merrill Lynch & Co., Inc., as the non-executive Chairman of the NASD Board of Governors.

The election of Mr. Tully completes the implementation of the governance recommendations made by an NASD Select Committee headed by former U.S. Senator Warren Rudman of New Hampshire. Other recommendations relating to governance previously implemented include reconstituting the NASD Board with a majority of outside directors and the creation of subsidiary boards having an equal number of industry and non-industry members.

"Dan Tully's stature, experience and proven leadership abilities will be invaluable to our organization in guiding it through a critical phase of its continued evolution," said Joseph R. Hardiman, NASD President and CEO. "His commitment to effective regulation and efficient, fair markets will serve all of our constituents well."

"The Nasdaq Stock Market plays a critical role in our capital markets, providing liquidity and access to capital for thousands of companies, while creating new opportunities for investors," Mr. Tully said. "It is imperative that we continue and even accelerate the ongoing process of change that has been set in motion by the recommendations advanced by SEC Chairman Levitt, the SEC staff, the Rudman Committee, and others. I am committed to working with the NASD Board, its two operating subsidiaries, the professional staff, regulatory officials and others to implement reforms that will advance the best interests of the investing public."

As a result of its corporate restructuring, the NASD parent is responsible for establishing and coordinating the policy agendas of its two subsidiaries, providing essential corporate services, and overseeing the effectiveness of each organization as it carries out its respective responsibilities.

In addition to serving as Chairman of the NASD, Mr. Tully will also chair a Search Committee that will begin the process of finding a successor to Mr. Hardiman who has previously announced his intention to retire. The members of the Search Committee will be announced shortly.

Mr. Tully began his career at Merrill Lynch in 1955 and rose to the position of President and Chief Operating Officer in 1985. He became Chief Executive Officer in 1992 and Chairman of the Board in 1993.

Mr. Tully has served in a number of industry leadership capacities, including Vice Chairman of the New York Stock Exchange, Vice Chairman of the American Stock Exchange, Vice Chairman of the Securities Industry Association, and, most recently, Chairman of a commission on best practices in the securities industry.

In addition to Messrs. Tully and Hardiman, other members of the newly constituted NASD Board are:

  • John H. Biggs, Chairman and Chief Executive Officer of TIAA and CREF in New York.
  • Elaine L. Chao, President of the United Way of America in Alexandria, Virginia, former Director of the Peace Corps, and former Deputy Secretary of the U.S. Department of Transportation.
  • E. David Coolidge III, Chief Executive Officer of William Blair & Company, L.L.C. in Chicago.
  • James Dimon, Chairman and Chief Executive Officer of Smith Barney, Inc., as well as President and Chief Operating Officer of Travelers Group in New York.
  • Charles B. Johnson, President and Chairman of Franklin Resources, Inc., in San Mateo, California.
  • Donald J. Kirk, Executive-in-Residence at the Columbia University Graduate School of Business, Member of the Public Oversight Board in New York, and former Chairman of the Financial Accounting Standards Board (FASB).
  • Bert C. Roberts, Jr., Chairman and Chief Executive Officer of MCI Communications in Washington, DC.
  • R. Brian Williamson, Chairman of London-based Gerrard & National Holdings Plc. and member of the U.K. Securities and Investments Board.

The NASD is the largest self-regulatory organization in the U.S. securities industry. While its subsidiary organizations, pursuant to delegated authority, take action on behalf of the NASD, the parent organization retains overall responsibility for ensuring that the NASD's statutory and self-regulatory obligations and functions are fulfilled. Mr. Hardiman is the NASD's President and CEO. Richard G. Ketchum is Executive Vice President and Chief Operating Officer of the parent organization.

NASD Regulation, Inc., established in 1996 as a separate independent subsidiary of the NASD, regulates the broker/dealer profession by overseeing the activities of nearly 5,500 securities firms, more than 61,000 branch offices, and in excess of 520,000 registered representatives. In addition, it regulates the markets operated by The Nasdaq Stock Market, Inc. In February 1996, Mary L. Schapiro, former Chairman of the Commodities Futures Trading Commission (CFTC) and former Commissioner and Acting Chairman of the Securities and Exchange Commission, joined NASD Regulation, Inc., as its first President.

The Nasdaq Stock Market, with 5,300 listed companies, is the most active securities market in the nation. It is the flagship market operated by The Nasdaq Stock Market, Inc. Other markets operated by this NASD subsidiary include the OTC Bulletin Board for development companies and foreign listings; PORTALSM for private placements; and FIPS for fixed income securities. Alfred R. Berkeley, former Managing Director and Senior Banker of the Corporate Finance Department of Alex. Brown & Sons Incorporated was elected President of The Nasdaq Stock Market, Inc., in May.