SEC approves Nasdaq securities exchange registration

The Securities and Exchange Commission today approved NASD's proposed changes to its rules to reflect the registration of the Nasdaq Stock Market LLC as a national securities exchange.

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Among the rules approved today is NASD's proposal to establish The Trade Reporting Facility LLC, which is jointly owned by NASD and the publicly traded parent company of the Nasdaq Stock Market LLC. The Trade Reporting Facility will operate the NASD facility for reporting of over-the-counter trades in Nasdaq securities. Approval of these NASD rule changes is a critical step in the operation of the Nasdaq Stock Market as a national securities exchange. The Commission approved Nasdaq's application to register as an exchange on Jan. 13, 2006.

The Commission also issued an order modifying the conditions for the operation of the Nasdaq Stock Market as a national securities exchange. The Commission's order enables Nasdaq to begin operating as an exchange in Nasdaq listed securities separately from other exchange-listed securities, pending the completion of the necessary conditions set forth in the original order granting exchange registration.

Separately, the Commission intends to act soon on the Nasdaq Stock Market's proposal to create a single pool of liquidity by integrating the operations of the Nasdaq Market Center with Nasdaq's Brut and INET facilities.

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