NASD Proposes Including Closed-End Funds in Nasdaq's Mutual Fund Quotation System

Washington, DC, September 8, 1998 - The SEC has issued a release soliciting comments on NASD proposed amendments to NASD Rule 6800 that would include certain closed-end funds in Nasdaq's Mutual Fund Quotation Service (MFQS). MFQS currently collects daily price and related data concerning open-end funds, and publicly disseminates the information to the news media and market data vendors on two lists. Funds on the News Media List are eligible for inclusion in the national newspaper fund tables and Nasdaq's Level 1 data feed service, while funds on the Supplemental List are disseminated only over the Level 1 data feed service.

Under the proposal, a closed-end fund would be required to have $100 million in assets for initial inclusion in the News Media List, and $60 million in assets for maintenance on the list. The criteria for initial inclusion in the Supplemental List would be $10 million in assets or two full years of operation, with no maintenance requirement. Comments on the NASD proposal are due by September 25, 1998.