Small Order Execution System (SOES)

TO: NASD Members and NASDAQ Level 2 and Level 3 Subscribers

Listed below are the 25 NASDAQ National Market System (NASDAQ/NMS) securities which have been selected as the first group of issues to trade in the Small Order Execution System (SOES) developed and operated by NASD Market Services, Inc. In SOES, agency orders of 500 shares or less received from public customers may be executed automatically with SOES market makers at the "inside" or best price in the NASDAQ System at the time of execution.

The initial group of SOES stocks was chosen based on an analysis of cleared trade data compiled during a two week period in September 1984. The 25 most active securities, measured in terms of the number of reported trades of 500 shares or less, were selected. After the start-up of SOES in December 1984, the universe of SOES stocks will be expanded to include all MASDAQ/NMS, and eventually all NASDAQ securities.

For more information on SOES, including the procedures which must be followed to register as a SOES market maker or order entry firm, please contact Robert Soos, Supervisor, SOES Operations Center, at (212) 839-6210.

SOES SECURITIES

Sincerely,

John T. Wall
Executive Vice President
Member and Market Services