STA Endorses NASD Restructuring Plan; Plan will Put Nasdaq on Level Playing Field, Provide Capital for Technology Upgrades

Business Wire, April 4, 2000

Business Editors

NEW YORK--(BUSINESS WIRE)--April 4, 2000

The Security Traders Association (STA) today gave its endorsement to the National Association of Securities Dealers (NASD) restructuring plan, saying it would enable the Nasdaq Stock Market to compete more effectively by putting it on a level playing field with new market entrants such as Electronic Communications Networks (ECNs).

"STA approves of the concepts and purposes of the NASD restructuring plan and believes that all market centers will need this kind of structure to compete effectively in today's rapidly changing securities industry," said Lee Korins, STA's president and chief executive officer. "An independent Nasdaq Stock Market will be positioned to adapt to changes in the industry much more quickly than in its present organizational structure."

According to STA, other benefits of the NASD restructuring plan include:

- Investment of a significant portion of the capital raised in

the Nasdaq spin-off for upgraded technology, an area where

Nasdaq needs substantial improvement. NASD made the need for

upgrades crystal clear recently with the request for an

extension in converting price quotes from fractions to

decimals, citing the inability of their information systems to

handle the additional message traffic that will be generated

by decimalization.

- Less cumbersome and more efficient regulation, with enhanced

protection for investors.

- Enhanced responsiveness to trader and investor feedback and

concerns, as well as more flexibility to make changes rapidly,

when appropriate.

The STA represents more than 7,700 professionals engaged in the buying, selling and trading of securities. The organization works to improve the ethics, business standards and working environment for those professionals through 32 local affiliate organizations in the U.S., Canada and Europe. The STA is the largest such organization in the world. For more information on STA, visit its web site at www.securitytraders.org.