News Release

The NASD and Philadelphia Stock Exchange Terminate Merger Discussions

New York, NY—The National Association of Securities Dealers, Inc. (NASD®), and the Philadelphia Stock Exchange (PHLX) today announced that they have ended discussions concerning a possible combination. Under the proposed combination, the options business of the Philadelphia Stock Exchange would have been incorporated into the American Stock Exchange® (Amex®) options market while the PHLX equities business would have continued as a separate market and subsidiary of the Amex.

After months of exploring the viability of a possible combination, the parties have determined that a combination is not feasible. This conclusion was outlined in a letter sent from the NASD to the PHLX which also suggested that discussions continue to explore other possible alternative structures. Those discussions, which are continuing, include working on completing the details of an interim technology agreement.

Both parties noted that the decision was not related to reactions of the SEC or the Department of Justice to the proposed combination.

Founded in 1790 as the first organized stock exchange in the United States, the Philadelphia Stock Exchange trades more than 2,600 stocks, 900 equity options, 14 sectors index options and 100 currency pairs.

The 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 Group, Inc. 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 GroupSM, the NASD operates The Nasdaq Stock Market and the American Stock Exchange.

For more information about the NASD and its subsidiaries, please visit the following Web sites: www‌; www‌; the Nasdaq TraderSM site at www‌; or the Nasdaq-Amex NewsroomSM at www‌