News Release

NASD Announces First Stage of ADF Roll-Out

Washington, D.C. — NASD today announced its Alternative Display Facility (ADF) began accepting quotes from Instinet Group Inc. for five Nasdaq stocks. This is the launch of the first phase of a nine phase roll-out which will lead to quoting in all Nasdaq stocks. The ADF was launched on July 29, 2002, after the Securities and Exchange Commission (SEC) approved rules governing the facility. Currently, the SEC has approved the ADF for only Nasdaq-listed securities.

ADF allows registered NASD market makers and electronic communications networks (ECNs) to publish quotations for, and report trades in, Nasdaq securities. ADF requires participants to provide order routing and execution capabilities through private means.

"We are pleased that ADF is now operating with quotes from Instinet," said Douglas H. Shulman, NASD's President of Regulatory Services and Operations. "We are also looking forward to having more customers sending quotes and reporting trades to ADF in the near future."

NASD plans to complete the ADF rollout schedule of all Nasdaq listed securities by Monday, December 2. The schedule is as follows:

STAGE 1 Monday 10/14/02 5 stocks / 5
STAGE 2 Thursday 10/17/02 12 stocks / 17
STAGE 3 Monday 10/21/02 88 stocks (A-AD) / 105
STAGE 4 Monday 10/28/02 1 stock (INTC) / 106
STAGE 5 Monday11/4/02 286 stocks (all remaining A's) / 392
STAGE 6 Monday 11/11/02 571 stocks (all B's and C's) / 963
STAGE 7 Monday 11/18/02 1,032 stocks (D's through J's) / 1,995
STAGE 8 Monday 11/25/02 1,175 stocks (K's through R's) / 3,170
STAGE 9 Monday 12/2/02 938 stocks (S's through Z's) / 4,108

ADF rules for quotes and trade reporting for New York Stock Exchange and American Stock Exchange securities are still pending final approval by the SEC.

NASD is the leading private-sector provider of financial regulatory services, dedicated to bringing integrity to the markets and confidence to investors through effective and efficient regulation and complementary compliance and technology-based services. NASD touches virtually every aspect of the securities business - from registering and educating all industry participants, to examining securities firms, enforcing both NASD rules and the federal securities laws, and administering the largest dispute resolution forum for investors and member firms. For more information please visit