News Release

NASD Board Approves Trading Halts for News Independent of Issuer Notification

Washington, D.C.—The National Association of Securities Dealers, Inc. (NASD®), today announced that its Board has approved a rule that will allow The Nasdaq Stock Market® to implement a temporary trading halt based on news about a security, independent of any notification to the issuer. This will modify the existing rule by allowing Nasdaq® to halt trading immediately, without first consulting with the issuer, as required under the present rule. The rule will submitted to the Securities and Exchange Commission for approval.

The rule change will permit Nasdaq to make this determination when it appears that significant corporate news is directly affecting the ability of market participants to conduct a fair and orderly market in the security. Nasdaq staff will continue to make every attempt to notify the issuer prior to instituting a halt, however such notification will no longer be a prerequisite.

"By removing this sometimes time-consuming requirement, our surveillance team will be able to act more quickly, reducing the time that partial or misinformation is affecting a stock," said Alfred R. Berkeley, III, President of The Nasdaq Stock Market, Inc.

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:;; Nasdaq TraderSM site at;   or the Nasdaq-Amex NewsroomSM at