In connection with a Securities and Exchange Commission recommendation, The Nasdaq Stock Market, Inc. (Nasdaq: NDAQ) took steps in August 2005 to provide greater transparency to investors by requesting that vendors add an indicator denoting when a NASDAQ-listed issuer failed to submit its regulatory filings on time, failed to meet NASDAQ's continuing listing standards, and/or filed for bankruptcy.
Since August, NASDAQ has been broadcasting this information on certain proprietary customer display devices and NASDAQ data feed products, such as Nasdaq.com and Nasdaqtrader.com. However, starting February 6, 2006, all data vendors will be required to display this information.
In view of the enhanced disclosure to investors provided by this indicator, NASDAQ will, as of February 6, 2006, cease adding new "C", "E", and "Q" fifth character modifiers for NASDAQ National Market and NASDAQ Capital Market securities. However, to avoid investor confusion, modifiers already in place on that date will remain until the underlying condition is resolved.
The FSI provides more information than fifth character modifiers concerning deficient companies.
The FSI data element is available on the following NASDAQ products: TotalView, NASDAQ Quotation Dissemination Service (NQDS), UTP Quotation Data Feed (UQDF), UTP Trade Data Feed, (UTDF), OTC Montage Data Feed (OMDF), NASDAQ issue Symbol Directory, NASDAQ Fundamental Data and NASDAQ Daily List. External market data distributors include the FSI on data feed products and market data terminals containing NASDAQ quotation and/or last sale information.
NASDAQ will continue to disseminate fifth character symbols to identify different classes of securities such as "W" for warrants, "P" for preferred stocks and "U" for units. The discontinuation of the fifth character identifier only applies to regulatory designators that identify "non-compliant" companies.