News Release

NASD Board Names Future Successor to Chairman and CEO Robert R. Glauber Effective December 2006

Washington D.C. - NASD's Board of Governors today announced the election of Mary L. Schapiro as NASD's next Chairman and Chief Executive Officer, effective December 2006.  She will succeed Robert R. Glauber, who will remain Chairman and CEO until December 2006.  Ms. Schapiro is currently the company's Vice Chairman and President of NASD's Regulatory Policy and Oversight Division.

"In announcing Mary's election now, the Board of Governors is acting to ensure a smooth handover in NASD's leadership as Bob Glauber prepares to step down late this year at the end of his current term," said Richard F. Brueckner, Chief Executive Officer of Pershing LLC and Presiding Governor of NASD's Board of Governors.  Mr. Brueckner also served on the special Board committee charged with selecting NASD's next Chairman and CEO.  The search committee was composed of a majority of non-industry members of the NASD Board.

"Mary is a highly respected and effective regulator who has proven herself time and again to be a strong investor advocate," said Brueckner.  "She is a proven leader and is uniquely qualified to take over as the head of NASD as it continues to execute its vital mission of protecting investors and ensuring market integrity. I am confident the securities industry will work closely with Mary and support NASD's efforts to make regulation both more efficient and effective."

He added, "At the same time, we owe a debt of gratitude to Bob Glauber who continues to lead NASD with distinction, integrity and energy.  Under his leadership, NASD has made important changes in its organizational structure that have set it apart as a truly independent private-sector regulator, providing unbiased and unconflicted oversight of the securities industry. His vision and steady hand during a period of great uncertainty and change in the financial markets have helped make NASD stronger, investors more secure and the markets more disciplined."

Ms. Schapiro joined NASD in 1996 as President of NASD Regulation and was named Vice Chairman in 2002.  As head of NASD's Regulatory Policy and Oversight Division, she serves as the primary regulator of 5,100 securities brokerage firms and the nearly 700,000 registered brokers who do business with the public.  The division is responsible for writing rules that govern the conduct of virtually all aspects of the securities industry, including sales practices and financial and operational integrity; examining firms for compliance with those rules; and enforcement of NASD rules as well as those of the Municipal Securities Rulemaking Board and federal securities laws.  It also has regulatory responsibility for The NASDAQ Stock Market, the American Stock Exchange and the International Securities Exchange.

Before joining NASD, Schapiro was the Chairman of the Commodity Futures Trading Commission (CFTC), a post to which President Clinton appointed her in 1994.  The CFTC is the federal agency responsible for regulation of the U.S. futures markets, including financial, agricultural and energy markets.  As Chairman, she participated in the President's Working Group on Financial Markets with the Secretary of the Treasury and the chairmen of the Federal Reserve Board and the SEC.

Prior to the CFTC, Schapiro served for six years as a Commissioner of the Securities and Exchange Commission.  She was appointed in 1988 by President Reagan, reappointed by President Bush in 1989 and named Acting Chairman by President Clinton in 1993.

Schapiro is an active member of the International Organization of Securities Commissions (IOSCO) and was elected Chairman of the IOSCO Consultative Committee in 2002 and 2004.

Said Schapiro, "I'm grateful to the Board for the confidence they have shown in me and for the opportunity they have extended to lead a truly dedicated, professional and accomplished team. I look forward to continuing to work with Bob over the next year to effect a seamless transition and continue the important work we have before us."

Said Glauber, "Mary Schapiro is a great choice and the natural choice as the next leader of NASD. We have had an effective partnership through challenging times.  Her election ensures that we don't skip a beat through the transition and that NASD continues to build on its positive momentum in the years ahead."

Mr. Glauber became NASD's Chairman in September 2001 after becoming its CEO in November 2000. Earlier in his career, Glauber served as Under Secretary of the Treasury for Finance from 1989 to 1992. In this capacity, he was the senior officer responsible for Treasury's domestic policy. After leaving Treasury, he was a lecturer at Harvard's Kennedy School of Government. In 1987, Glauber served as Executive Director of the Task Force on Market Mechanisms (Brady Commission) appointed by President Reagan to study the 1987 stock market crash.

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 registered firms. For more information, please visit our Web site at