Nasdaq Proposes to Reduce UIT Processing Fees

Washington, DC, March 25, 2002 - The Securities and Exchange Commission has issued a release requesting comment on amendments to a proposed rule change by the Nasdaq Stock Market, Inc. The proposal concerns inclusion of certain UITs in Nasdaq's Mutual Fund Quotation Service (MFQS). Comments on the amendments are due to the SEC by April 1, 2002.

Specifically, Nasdaq proposes to amend Rule 7090, the rule that sets forth the fees for including mutual funds and UITs in the MFQS. The amendment would impose a one-time MFQS application processing fee of $150 whenever a UIT that is listed in the MFQS expires and is replaced within three months of its expiration by a trust that is materially similar.

Previously, Nasdaq had proposed to amend the rule by, among other things, eliminating the application processing fee entirely. In the release, however, Nasdaq explains that after it submitted its original proposal, it received new information indicating that the number of UITs that would potentially qualify for the application fee waiver was substantially greater than first anticipated. As a result, it has determined to revise the rule to provide only a partial fee waiver, thereby reducing the fee to $150 instead of its standard $250 fee.

In March 2001, the Institute submitted a comment letter to the SEC that addressed Nasdaq's proposed amendments to Rule 7090.