Nasdaq Proposes Rule Changes Relating to Fee Structure

Washington, DC, October 11, 2001 - The NASD, through its subsidiary, the Nasdaq Stock Market, has filed with the SEC two proposed rule changes adjusting the fees charged to NASD members and non-NASD members for use of the Nasdaq National Market System (NNMS) and SelectNet Service. Nasdaq implemented the new fees charged to NASD members as of October 1, 2001. Comments on the proposed rule changes are due to the SEC no later than October 31, 2001.

Nasdaq states that the changes to its fee structure are the result of several market structure changes in the Nasdaq Stock Market. Specifically, Nasdaq believes that the introduction of the NNMS has significantly reduced the number of orders required for the trading of a given volume of shares and, while these changes are for the benefit of all market participants, they are incompatible with its current fee structure for the NNMS, which is based on the number of orders executed.