News Release

Frank G. Zarb Comments on Competition

Washington, D.C.—The National Association of Securities Dealers, Inc. (NASD®), today issued the following statement in response to inquiries on the competitive environment.

NASD Chairman and CEO Frank G. Zarb commented, "There is a revolution underway in the way markets buy and sell stocks. The markets are getting more competitive and technology is being used to deliver better service at lower costs. We have no way of knowing the accuracy of stories suggesting that the New York Stock Exchange is considering competing directly with The Nasdaq Stock Market to trade Nasdaq stocks. If these stories are correct, we are up to the challenge. In fact, this demonstrates what we have been saying, that Nasdaq’s open access pro-competition market model is the superior place for large successful companies such as Microsoft and Intel as well as General Electric and IBM to trade. It is no surprise to me that the market today recognizes the value of this model."

Mr. Zarb also noted that, "In this new competitive environment, it is clearly time for the NYSE to remove its anti-competitive Rules 500 and 390 completely. Those rules restrict issuers from freely choosing to shift to The Nasdaq Stock Market or American Stock Exchange and prohibit their members from trading many NYSE securities off the exchange."

The National Association of Securities Dealers, Inc. (NASD®), is the largest securities-industry, self-regulatory organization in the United States and parent organization of NASD Regulation, Inc., and The Nasdaq-Amex Market GroupSM. Through its regulatory subsidiary, the NASD develops rules and regulations, provides a dispute resolution forum, and conducts regulatory reviews of member activities for the protection and benefit of investors. Through the Nasdaq-Amex Market Group, the NASD operates The Nasdaq Stock Market® and the American Stock Exchange (Amex®) in a unique dual market structure that brings together the central auction specialist and multiple Market Maker systems. The Nasdaq Stock Market is the largest screen based exchange in the world. For more information about the NASD and its subsidiaries, please visit the following Web sites: www‌; www‌; or the Nasdaq-Amex NewsroomSM at www‌