News Release

NASD Board Approves "Trade or Move" Quotation Proposal

Washington, D.C.—The National Association of Securities Dealers, Inc. (NASD®), today announced that its Board has approved a recommendation that would require Market Makers to execute certain orders or move their quotations to a lower price level. The "trade or move" proposal has been submitted to the Securities and Exchange Commission for final approval.

Under the recommendation, Market Makers would have to lower their current quotes whenever they receive, and fail to execute, a larger order. They would also be prohibited from using an electronic system to repeatedly execute numerous small sized orders at the same price, while the larger order remains unfilled.

Current NASD rules allow dealers to receive an order larger than the order displayed size and keep their leading inside quotes, although the larger quote, or a portion thereof, remains unfilled.

"We believe the proposal will improve market efficiency and reduce transactional costs for all market participants, including individual investors," said Alfred R. Berkeley, III, President of The Nasdaq Stock Market, Inc. "These changes are somewhat technical in nature, and reflect our ongoing efforts to modernize the market as technology changes customers’ expectations and permits investors to use more sophisticated trading strategies."

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 (Amex®). The NASD oversees the nation’s 5,600 brokerage firms and more than half a million registered brokers. Consumers can contact the NASD to obtain the disciplinary and work histories, as well as other selected background information, of member firms and individual brokers or to get information on how to lodge a complaint.

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