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NASDAQ INTERNATIONAL TO OPEN AT 3:30 A.M. MONDAY, JAN. 20; HISTORIC STEP TO CREATE TRANSATLANTIC MARKET

 NASDAQ INTERNATIONAL TO OPEN AT 3:30 A.M. MONDAY, JAN. 20;
 HISTORIC STEP TO CREATE TRANSATLANTIC MARKET
 WASHINGTON, Jan. 17 /PRNewswire/ -- The National Association of Securities Dealers, Inc. (NASD), will begin operation of Nasdaq International at 3:30 a.m. EST on Monday, Jan. 20. The trading session, which will conclude at 9 a.m. EST, one-half hour before the start of The Nasdaq Stock Market's domestic trading day, coincides with the opening hours of the London financial markets.
 Approved by the Securities and Exchange Commission as a two-year pilot program, Nasdaq International will allow, for the first time, trading in securities listed on The Nasdaq Stock Market and U.S. stock exchanges to take place in London for most of London's trading day (8:30 a.m. to 2 p.m. London time).
 "Nasdaq International is effectively an extension of The Nasdaq Stock Market to Europe," said Joseph R. Hardiman, NASD president and chief executive officer. "Although we expect limited participation and volume in the beginning, Nasdaq International represents an historic step in the evolution of world equity markets and around the clock trading."
 Trading on Nasdaq International, in which participation is voluntary, uses the same screen-based technology as The Nasdaq Stock Market. It is made possible by a transatlantic telecommunications line linking The Nasdaq Stock Market in the United States to a communications node in London. Currently, 10 market makers in the United States and the United Kingdom have registered to participate in the European trading session. Participating in the opening session will be First Boston, Goldman Sachs, Lehman Brothers and Bernard Madoff Securities in the U.K., and Rauscher Pierce, Herzog Heine Geduld, Sherwood Securities and Castle Securities in the U.S. Two additional market makers in the U.K., UBS Securities and Morgan Stanley, are registered to begin participation in the near future. About 1,500 securities will be registered for trading on Nasdaq International's first day.
 Eligibility
 Broker-dealers who are NASD members will be eligible to participate as market makers from their trading facilities in the U.S. or the U.K. Non-U.S. broker-dealers who are corporate affiliates of NASD members, but not members themselves, can be approved for market making subject to certain regulatory requirements. Participating broker-dealers have the choice of registering with the NASD as a European-only market maker (active during the European session only) or an international market maker (active during both the London and U.S. trading sessions) in one or more qualified securities. Corporate affiliates of NASD member firms are eligible for the European session only.
 Regulatory Scheme
 Nasdaq International will be regulated by the NASD in virtually the same manner as The Nasdaq Stock Market.
 Market makers who choose to participate will be required to maintain firm, two-sided quotes in each of their registered securities, as is now done in The Nasdaq Stock Market.
 The regulatory scheme that will govern trading during the European session will differ from that for The Nasdaq Stock Market as follows:
 -- Nasdaq International participants will have three minutes to report their trades to Nasdaq, compared with 90 seconds in The Nasdaq Stock Market. Consolidated volume figures will be released shortly after the end of the European session.
 -- The NASD will collect transaction reports for regulatory purposes, but generally will not publish them during the European session. However, for U.K. ADRs that are quoted in Nasdaq International by at least two market makers, trade reports will be published in real time. After the close of the European session, the NASD will provide information consisting of the high, low and closing prices and volume for securities with at least two market makers. The 20-day waiting period for re-registration in a Nasdaq securities will not apply to Nasdaq International.
 -- Participating NASD broker-dealers who are also members of any U.S. stock exchange will be expected to comply with the rules of those exchanges concerning off-board trading of listed securities. Firms belonging exclusively to the NASD, however, will not be affected by exchange-imposed restrictions.
 -- Market makers will not be required to participate in the Small Order Execution System (SOES), nor will any market maker withdrawal penalties be imposed.
 -0- 1/17/92
 /CONTACT: Robert Ferri of the National Association of Securities Dealers, 202-728-8955/ CO: National Association of Securities Dealers, Inc. ST: IN: FIN SU:


MP -- DC001 -- 0877 01/17/92 09:26 EST
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Date:Jan 17, 1992
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