News Release

NASD Appoints Eight-Member Economic Advisory Board

Washington, D.C.--The National Association of Securities Dealers, Inc. (NASD) today announced it has created a senior-level Economic Advisory Board (EAB), bringing together some of the nation's most respected and experienced economists.

The eight-member board, which includes a Nobel Prize winner and a former Chief Economist of the Securities and Exchange Commission (SEC), was formed to provide independent analyses and recommendations to the NASD and The Nasdaq Stock Market, Inc. on a wide range of issues.

"We're fortunate indeed to have assembled this impressive group of scholars," said Joseph R. Hardiman, President and CEO of the NASD. "Their counsel and insight will be of immeasurable assistance to this organization and all who have an interest in the continuing evolution of The Nasdaq Stock Market. The NASD has benefited from its long association with academia and this new advisory board builds on that valued relationship."

The EAB will meet at least twice a year to review a wide array of issues that affect the NASD and Nasdaq. Between meetings, board members will work individually and jointly in exploring and researching issues pertaining to markets operated and regulated by the NASD.

"The EAB is an important two-way bridge between the NASD and the academic community," said Dean Furbush, Nasdaq Chief Economist. "The NASD needs to keep up on the best and latest thinking in the academic community. In return, we can provide a wealth of institutional information that will help fuel relevant research."

Topics on which the EAB will focus include:

  • Identifying specific ways in which Nasdaq can improve its trading systems to better serve investors;
  • Recommending specific issues worthy of further academic review;
  • Outlining the broad issues Nasdaq will face as an equities market in its next 25 years; and
  • Playing a continuing economic advisory role as Nasdaq implements its market restructuring program.

The EAB members are:

  • Robert A. Schwartz (Chairman)--Professor of Finance and Economics and Yamaichi Faculty Fellow at the Stern School of Business at New York University.
  • Marshall E. Blume--The Howard Butcher III Professor of Financial Management at the Wharton School at the University of Pennsylvania. Professor Blume is also Director of the Rodney L. White Center for Financial Research at the Wharton School.
  • Kenneth M. Lehn--Professor of Business Administration at the Katz School of Business at the University of Pittsburgh. Professor Lehn served as Chief Economist at the Securities and Exchange Commission from June 1987 through July 1991.
  • A. Craig MacKinlay--The Joseph P. Wargrove Professor of Finance at the Wharton School at the University of Pennsylvania. Professor MacKinlay is also a Research Associate of the National Bureau of Economic Research.
  • Merton H. Miller--The Robert R. McCormick Distinguished Service Professor (Emeritus) of Finance at the Graduate School of Business at the University of Chicago. In 1990, Professor Miller received the Nobel Prize in Economic Science for his work in the area of corporate finance.
  • Mark L. Mitchell--Associate Professor of Finance at the Graduate School of Business at the University of Chicago. Professor Mitchell received the Roger F. Murray First Prize Award for the best research paper presented at the 1989 Institute for Quantitative Research in Finance, Fall and Spring Seminars.
  • Maureen O'Hara--The Robert W. Purcell Professor of Finance at the Johnson Graduate School of Management at Cornell University. Professor OOHara serves as a director of the American Finance Association and the Western Finance Association.
  • Robert A. Wood--Distinguished Professor of Finance at the Fogelman College of Business and Economics at the University of Memphis. Professor Wood has served as Executive Director of the Institute for the Study of Securities Markets since 1987. From 1987 to 1988, Professor Wood served as a member of the Presidential Task Force on Market Mechanisms (the Brady Commission) which studied the October 1987 stock market downturn.

Some members of the EAB have served as consultants to the NASD or Nasdaq in the past, or are from business schools with financial research centers partially supported by the NASD. Others have worked with institutions that have voiced constructive criticism of the market and the NASD or Nasdaq. Members of the EAB have agreed to volunteer their services and will only receive reimbursement for out-of-pocket expenses.