News Release

NASD Forms Economic Advisory Board for Rule Modernization Initiative

Washington, D.C.— NASD recently appointed an Economic Advisory Board (EAB) to advise NASD staff on its rule modernization initiative. The EAB will provide advice and guidance on NASD rules that may need to be revised and on ways that NASD can maximize the benefits of its regulation while minimizing its costs.

The EAB will subject NASD rules to rigorous economic analysis. The initial rule modernization undertaking was announced in Notice to Members 01-35. Organized by James Nuzzo, managing partner at The Colchester Group, the EAB is composed of economists and other experts on securities regulation and its impact on the industry and investors, and includes the following members:

  • Professor Allen Ferrell, Harvard Law School;
  • Sharon Hermanson, Senior Policy Advisor, Public Policy Institute, AARP National Headquarters;
  • Professor Charles M.C. Lee, Parker Center for Investment Research, Johnson Graduate School of Management, Cornell University;
  • Professor Andrew W. Lo, Sloan School of Management, Massachusetts Institute of Technology;
  • Professor James B. MacRae, Jr., George Mason University;
  • Professor Maureen O'Hara, Johnson Graduate School of Management, Cornell University;
  • Barbara Roper, Director of Investor Protection, Consumer Federation of America;
  • Professor Erik R. Sirri, Finance Division, Babson College; and
  • Jonathan Tiemann, Ph.D., Managing Partner, Tiemann Investment Advisers.

NASD Chairman and CEO, Robert Glauber said, "This is a truly distinguished group, which will bring to bear vast expertise in economics, finance, and consumer protection. By assisting us in this rigorous review, the Advisory Board will benefit NASD, investors and our members."

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