News Release

NASD Board Approves Rules Governing Quotation and Trade Reporting Facility

Washington, DC—The Board of Governors of the National Association of Securities Dealers, Inc. (NASD®) has approved new rules to allow the establishment of an over-the-counter quotation and trade reporting facility. The proposed rules were filed with the Securities and Exchange Commission last Friday.

The Alternative Display Facility (ADF) will allow registered NASD market makers and electronic communications networks (ECNs) to publish quotations for, and report trades in, listed securities. The facility is targeted for completion late in the second quarter of 2002.

Listed securities include equity securities listed on both Nasdaq National and SmallCap markets (once Nasdaq is an exchange), the New York Stock Exchange and the American Stock Exchange.

“In building the ADF, the NASD will fulfill its obligation to provide a facility that will display quotes and collect trade data, while keeping NASD market-operating obligations to a minimum. We are committed to NASD’s focusing on its core mission of being a tough, fair regulator and providing market integrity services to markets and members. While we plan to fulfill our obligation to build the ADF, we do not plan on creating a full-blown market. Running a full-blown market could conflict with our core regulatory mission,” said Robert R. Glauber, Chairman and CEO of the NASD.

Other than providing ADF participants access to ITS, the intermarket linkage system for NYSE and Amex stocks, the ADF will not provide order execution or routing. However, the NASD will require ADF market participants to provide electronic access to their best-priced quotations and orders displayed on the ADF to all NASD members.

The NASD is the largest securities industry, self-regulatory organization in the United States. It is the parent organization of NASD Regulation, Inc.; the American Stock Exchange, LLC; and NASD Dispute Resolution, Inc. For more information about NASD please visit: