SEC Approves NASDAQ's Exchange Registration Application

The Nasdaq Stock Market, Inc. announced that the Securities and Exchange Commission (SEC) has approved NASDAQ's application to operate as a national securities exchange. This action will allow NASDAQ to take the final steps needed to complete its separation from

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The Nasdaq Stock Market, Inc. announced that the Securities and Exchange Commission (SEC) has approved NASDAQ’s application to operate as a national securities exchange. This action will allow NASDAQ to take the final steps needed to complete its separation from the National Association of Securities Dealers (NASD).

With exchange status, NASDAQ will be licensed to operate a newly formed subsidiary, The NASDAQ Stock Market LLC, as its own self-regulatory organization (SRO).

“NASDAQ’s front line regulator, the NASD, will sit outside the exchange,” said Edward Knight, executive vice president and general counsel for NASDAQ. “This will allow us to complete our vision for NASDAQ as the premier market in the world served by the gold standard in regulators, the NASD.”

NASDAQ will continue to be subject to SEC oversight. NASDAQ’s independence from the NASD means NASDAQ’s exchange subsidiary will have its own rules regarding trading, listing, membership and regulation; and have its own members. NASDAQ does not plan to change its name as a result of exchange registration.

“NASDAQ’s independence from the NASD also removes the possibility of a conflict of interest between the market and its regulatory arm,” said Bob Greifeld, president and chief executive officer of NASDAQ. “In addition, NASDAQ will benefit from an enhanced ability to compete with other domestic and foreign exchanges that enjoy the benefits of being fully independent public company exchanges.”

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