News Release

NASD Announces a Temporary Fee Reduction for SelectNet Trades

Washington, D.C.-- The National Association of Securities Dealers, Inc. (NASD) today announced that it will temporarily reduce the fee charged for the execution of each transaction on The Nasdaq Stock Market’s SelectNetSM trading system by 50 percent. The fee has been reduced from $2.50 per transaction to $1.25 per transaction, effective October 1, 1997, and will continue until the end of the year.

SelectNet offers traders an alternative to negotiating over the telephone by providing an automated negotiation and execution system. Orders of any size below 100,000 shares can be traded on SelectNet. After negotiation and execution, transactions are reported automatically to Nasdaq for public dissemination, and sent for clearance and settlement.

The fee abatement recognizes the increased used of electronic communications by the Nasdaq trading community. A number of factors contributing to the increase include: technological advances, increased trading volume over the past year and the introduction of Electronic Communication Networks (ECNs) under the SEC Order Handling Rules. The Rules, implemented in January of this year, require Market Makers that enter orders priced better than their published quote into ECNs such as Instinet or Bloomberg B Trade, to display that price to the entire marketplace. Under the Rules, the SelectNet system is used to create the linkage between The Nasdaq Stock Market and the ECNs.

"As we approach billion share trading days and increased participation by Market Makers, we’ve seen marked increase in the use of electronic communications over telecommunications. The change to SelectNet fees is appropriate given the increasingly automated nature of our market. We want to make every effort to help make this the market of choice–not only for investors and issuers, but also for the Market Makers that supply the exceptional liquidity that Nasdaq offers and really are the backbone of our market" said Frank Zarb, Chairman, CEO, and President of the National Association of Securities Dealers, Inc. (NASD).

Nasdaq is a subsidiary of the NASD, the largest securities-industry self-regulatory organization in the United States. The Nasdaq Stock Market is the fastest growing stock market in the United States and the world’s largest electronic market. For more information on Nasdaq, visit its Web site at